PC Connection, Inc. — Earnings Quality Grade C
CNXN · Technology
Some red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 75 days, change +2 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 2.5%, CFFO -62.4%. Cash follows revenue
Expense Quality
Inventory growth 51.0% exceeds COGS 2.2%
CapEx growth -2.5% vs revenue 2.5%. Normal
SG&A/Gross Profit = 75.8%, exceeds 70%
Gross margin 18.8%, change +0.2pp. Stable
Cash Flow Quality
CFFO/NI = 0.78. Below 1.0
FCF $0.1B, FCF/NI = 0.69
Accruals ratio = 1.4%. Low accruals
Cash $0.4B covers debt $0.0B
Balance Sheet Health
Goodwill+Intangibles $0.1B = 8% of equity. Manageable
Debt/EBITDA = 0.0x. Healthy
Other assets grew 537.0% vs revenue 2.5%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -2% YoY. Normal
Manipulation Score
M-Score = -2.40 (< -2.22). Unlikely manipulator
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Beneish M-Score
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Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25