Amazon.com, Inc. — Earnings Quality Grade C
AMZN · Consumer Cyclical
Some red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 34 days, change +3 days YoY
AR growth 22.1% exceeds revenue growth 12.4%
Revenue 12.4%, CFFO 20.4%. Cash follows revenue
Expense Quality
Inventory 12.0% vs COGS 9.2%. Normal
CapEx growth 58.8% is >2x revenue growth 12.4%
SG&A/Gross Profit = 16.2%, excellent (<30%)
Gross margin 50.3%, change +1.4pp. Stable
Cash Flow Quality
CFFO/NI = 1.80. Profits backed by cash
FCF $7.7B, FCF/NI = 0.10
Accruals ratio = -7.6%. Low accruals
Cash $123.0B covers 80% of debt $153.0B
Balance Sheet Health
Goodwill+Intangibles $32.5B = 8% of equity. Manageable
Debt/EBITDA = 0.9x. Healthy
Other assets grew 54.2% vs revenue 12.4%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 3% YoY. Normal
Manipulation Score
M-Score = -2.59 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-08