Credo Technology Group Holding — Earnings Quality Grade F
CRDO · Technology
Major red flags
Screening Summary
Management Signals
Source: SEC EDGAR 8-K Item 5.02, with exhibit links when available
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 23 days (113 → 135)
AR outpaced revenue for 2 consecutive years
Revenue 126.3%, CFFO 98.8%. Cash follows revenue
Expense Quality
Inventory growth 247.5% far exceeds COGS 109.2%, margin rising. Fraud signal
CapEx growth 130.4% vs revenue 126.3%. Normal
SG&A/Gross Profit = 35.0%. Normal
Gross margin 64.8%, change +2.9pp. Stable
Cash Flow Quality
CFFO/NI = 1.25. Profits backed by cash
FCF $0.0B, FCF/NI = 0.56
Accruals ratio = -1.6%. Low accruals
Cash $0.4B covers debt $0.0B
Balance Sheet Health
No goodwill. Clean balance sheet
Debt/EBITDA = 0.3x. Healthy
Other assets -26.6% vs revenue 126.3%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
No goodwill
Manipulation Score
M-Score = -1.56 (> -1.78). LIKELY MANIPULATOR
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25