APA Corporation — Earnings Quality Grade F
APA · Energy
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 43 days, change -30 days YoY
AR growth -45.8% vs revenue growth -8.4%
Revenue -8.4%, CFFO 25.6%. Cash follows revenue
Expense Quality
Inventory -17.4% vs COGS -2.4%. Normal
CapEx growth -5.0% vs revenue -8.4%. Normal
SG&A/Gross Profit = 9.7%, excellent (<30%)
Gross margin 40.6%, change -3.6pp. Stable
Cash Flow Quality
CFFO/NI = 3.17. Profits backed by cash
FCF $1.8B, FCF/NI = 1.24
Accruals ratio = -17.5%. Low accruals
Cash $0.5B covers only 11% of debt $4.6B
Balance Sheet Health
No goodwill. Clean balance sheet
Debt/EBITDA = 0.9x. Healthy
Other assets -11.5% vs revenue -8.4%. Normal
Write-offs normal
Acquisition Risk
FCF after acquisitions positive
No goodwill
Manipulation Score
M-Score = -3.68 (< -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 · 2026-04-10