Franklin Resources, Inc. — Earnings Quality Grade F
BEN · Financial Services
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 64 days, change +0 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 3.5%, CFFO 9.8%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth -12.8% vs revenue 3.5%. Normal
SG&A/Gross Profit = 69.5%. Normal
Gross margin 80.3%, change +0.2pp. Stable
Cash Flow Quality
CFFO/NI = 2.03. Profits backed by cash
FCF $0.9B, FCF/NI = 1.74
Accruals ratio = -1.7%. Low accruals
Cash $3.6B covers only 27% of debt $13.3B
Balance Sheet Health
Goodwill+Intangibles $10.4B = 86% of equity. Over 50%
Debt/EBITDA = 9.4x (>4x). Financial stress
Other assets grew 22.5% vs revenue 3.5%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -6% YoY. Normal
Manipulation Score
M-Score = -2.53 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score — Not Applicable
Franklin Resources, Inc. is a financial company. Z-Score is designed for non-financial companies.
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09