CSP Inc. — Earnings Quality Grade F
CSPI · Technology
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 75 days, change -21 days YoY
AR growth -17.2% vs revenue growth 6.4%
Revenue 6.4%, CFFO -46.2%. Cash follows revenue
Expense Quality
Inventory -37.1% vs COGS 10.6%. Normal
CapEx growth 81.6% is >2x revenue growth 6.4%
SG&A/Gross Profit = 99.2%, exceeds 70%
Gross margin 31.5%, change -2.6pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF $0.0B, FCF/NI = -20.81
Accruals ratio = -3.3%. Low accruals
Cash $0.0B covers debt $0.0B
Balance Sheet Health
Goodwill+Intangibles $0.0B = 0% of equity. Manageable
Interest coverage = -8.7x (<2x). Financial stress
Other assets 4.5% vs revenue 6.4%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 38% YoY
Manipulation Score
M-Score = -2.60 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25