Dow Inc. — Earnings Quality Grade F
DOW · Basic Materials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 43 days, change +3 days YoY
AR outpaced revenue for 2 consecutive years
Revenue -7.0%, CFFO -64.6%. Cash follows revenue
Expense Quality
Inventory 0.8% vs COGS -2.4%. Normal
CapEx growth -19.1% vs revenue -7.0%. Normal
SG&A/Gross Profit = 55.0%. Normal
Gross margin 6.3%, change -4.4pp. Stable
Cash Flow Quality
CFFO/NI = -0.39. Below 1.0
FCF is negative ($-1.4B)
Accruals ratio = -6.2%. Low accruals
Cash $3.8B covers only 19% of debt $19.6B
Balance Sheet Health
Goodwill+Intangibles $9.5B = 59% of equity. Over 50%
Debt/EBITDA = 16.5x (>4x). Interest coverage = 0.2x (<2x). Financial stress
Other assets 6.3% vs revenue -7.0%. Normal
Write-offs normal
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles change -8% YoY. Normal
Manipulation Score
M-Score = -2.41 (< -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