A

Flexsteel Industries, Inc. — Earnings Quality Grade A

FLXS · Consumer Cyclical

Strong financial health

Revenue
$441M
2025
Net Income
$20M
2025
Gross Margin
22.2%
Free Cash Flow
$34M
01

Screening Summary

16
Passed
1
Watch
0
Failed
-2.72
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 29 days, change -10 days YoY

A2AR vs Revenue Growth

AR growth -20.4% vs revenue growth 6.9%

A3Revenue vs CFFO

Revenue 6.9%, CFFO 16.0%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory -7.7% vs COGS 5.4%. Normal

B2CapEx vs Revenue

CapEx growth -31.7% vs revenue 6.9%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 68.1%. Normal

B4Gross Margin

Gross margin 22.2%, change +1.1pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 1.83. Profits backed by cash

C2Free Cash Flow

FCF $0.0B, FCF/NI = 1.67

C3Accruals Ratio

Accruals ratio = -6.0%. Low accruals

!
C4Cash vs Debt

Cash $0.0B covers 67% of debt $0.1B

04

Balance Sheet Health

D1Goodwill + Intangibles

No goodwill. Clean balance sheet

D2Leverage

Debt/EBITDA = 1.9x. Healthy

D3Soft Asset Growth

Other assets -0.8% vs revenue 6.9%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

No goodwill

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.72 (< -2.22). Unlikely manipulator

Portfolio monitoring

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04

Beneish M-Score

Manipulation Probability-2.72
-4.0 Clean-2.22 Grey-1.78 Danger0
0.745
DSRI
AR growing faster than revenue?
0.952
GMI
Gross margin declining?
1.502
AQI
Asset quality deteriorating?
1.069
SGI
Revenue growth rate
0.872
DEPI
Depreciation slowing?
0.886
SGAI
SG&A ratio changing?
-0.0596
TATA
Accruals level
0.924
LVGI
Leverage increasing?
05

Altman Z-Score

6.94
Safe Zone
0 Distress1.102.605.0+ Safe
0.3907
Liquidity
0.6741
Cumulative profit
0.0957
Operating efficiency
1.4645
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25