CDW Corporation — Earnings Quality Grade F
CDW · Technology
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO increased by 13 days
AR outpaced revenue for 2 consecutive years
Revenue 6.8%, CFFO -5.6%. Cash follows revenue
Expense Quality
Inventory -6.9% vs COGS 7.0%. Normal
CapEx growth -4.5% vs revenue 6.8%. Normal
SG&A/Gross Profit = 66.0%. Normal
Gross margin 21.7%, change -0.2pp. Stable
Cash Flow Quality
CFFO/NI = 1.13. Profits backed by cash
FCF $1.1B, FCF/NI = 1.02
Accruals ratio = -0.9%. Low accruals
Cash $0.6B covers only 11% of debt $5.8B
Balance Sheet Health
Goodwill+Intangibles $5.8B = 224% of equity. Over 50%
Debt/EBITDA = 3.0x. Healthy
Other assets grew 34.9% vs revenue 6.8%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -2% YoY. Normal
Manipulation Score
M-Score = -2.34 (< -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