Eaton Corporation, PLC — Earnings Quality Grade F
ETN · Industrials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 72 days, change +4 days YoY
AR growth 16.6% exceeds revenue growth 10.3%
Revenue 10.3%, CFFO 3.4%. Cash follows revenue
Expense Quality
Inventory 11.7% vs COGS 11.4%. Normal
CapEx growth 13.7% vs revenue 10.3%. Normal
SG&A/Gross Profit = 41.8%. Normal
Gross margin 37.6%, change -0.6pp. Stable
Cash Flow Quality
CFFO/NI = 1.09. Profits backed by cash
FCF $3.6B, FCF/NI = 0.87
Accruals ratio = -0.9%. Low accruals
Cash $0.8B covers only 8% of debt $10.5B
Balance Sheet Health
Goodwill+Intangibles $20.8B = 107% of equity. Over 50%
Debt/EBITDA = 1.7x. Healthy
Other assets 10.4% vs revenue 10.3%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 8% YoY. Normal
Manipulation Score
M-Score = -2.37 (< -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 · 2026-04-09