American Water Works Company, I — Earnings Quality Grade F
AWK · Utilities
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 28 days, change -4 days YoY
AR growth -5.0% vs revenue growth 9.7%
Revenue 9.7%, CFFO 0.7%. Cash follows revenue
Expense Quality
Inventory 8.7% vs COGS 8.7%. Normal
CapEx growth 9.7% vs revenue 9.7%. Normal
Insufficient data
Gross margin 60.7%, change +0.4pp. Stable
Cash Flow Quality
CFFO/NI = 1.85. Profits backed by cash
FCF < 50% of Net Income for 3 years
Accruals ratio = -2.7%. Low accruals
Cash $0.1B covers only 1% of debt $15.9B
Balance Sheet Health
Goodwill+Intangibles $1.2B = 11% of equity. Manageable
Debt/EBITDA = 5.4x (>4x). Financial stress
Other assets -24.3% vs revenue 9.7%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Goodwill+Intangibles change 1% YoY. Normal
Manipulation Score
Insufficient data
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10