A.O. Smith Corporation — Earnings Quality Grade C
AOS · Industrials
Some red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 55 days, change +4 days YoY
AR growth 7.6% vs revenue growth 0.3%
Revenue 0.3%, CFFO 6.0%. Cash follows revenue
Expense Quality
Inventory -9.9% vs COGS -0.8%. Normal
CapEx growth -34.4% vs revenue 0.3%. Normal
SG&A/Gross Profit = 51.1%. Normal
Gross margin 38.8%, change +0.7pp. Stable
Cash Flow Quality
CFFO/NI = 1.13. Profits backed by cash
FCF $0.5B, FCF/NI = 1.00
Accruals ratio = -2.2%. Low accruals
Cash $0.2B covers debt $0.2B
Balance Sheet Health
Goodwill+Intangibles $1.1B = 58% of equity. Over 50%
Debt/EBITDA = 0.2x. Healthy
Other assets -5.6% vs revenue 0.3%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -1% YoY. Normal
Manipulation Score
M-Score = -2.50 (< -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 · 2026-04-09