Devon Energy Corporation — Earnings Quality Grade F
DVN · Energy
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 38 days, change -7 days YoY
AR growth -9.1% vs revenue growth 7.8%
Revenue 7.8%, CFFO 1.7%. Cash follows revenue
Expense Quality
Inventory 14.3% vs COGS 14.0%. Normal
CapEx growth -47.5% vs revenue 7.8%. Normal
SG&A/Gross Profit = 11.2%, excellent (<30%)
Gross margin 25.5%, change -4.0pp. Stable
Cash Flow Quality
CFFO/NI = 2.54. Profits backed by cash
FCF $2.8B, FCF/NI = 1.06
Accruals ratio = -12.9%. Low accruals
Cash $1.4B covers only 17% of debt $8.6B
Balance Sheet Health
Goodwill+Intangibles $0.8B = 5% of equity. Manageable
Debt/EBITDA = 1.1x. Healthy
Other assets grew 47.4% vs revenue 7.8%
Write-offs normal
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 0% YoY. Normal
Manipulation Score
M-Score = -3.03 (< -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