Alight, Inc. — Earnings Quality Grade F
ALIT · Technology
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 62 days, change -11 days YoY
AR growth -17.8% vs revenue growth -3.0%
Revenue -3.0%, CFFO 42.9%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth -9.1% vs revenue -3.0%. Normal
SG&A/Gross Profit = 56.9%. Normal
Gross margin 33.8%, change -0.2pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF $0.2B, FCF/NI = -0.08
Accruals ratio = -75.7%. Low accruals
Cash $0.3B covers only 13% of debt $2.1B
Balance Sheet Health
Goodwill+Intangibles $2.7B = 254% of equity. Over 50%
Interest coverage = 0.4x (<2x). Financial stress
Other assets -43.1% vs revenue -3.0%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -56% YoY. Normal
Manipulation Score
M-Score = -6.47 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25