Harmonic Inc. — Earnings Quality Grade C
HLIT · Technology
Some red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 87 days, change -20 days YoY
AR growth -40.2% vs revenue growth -26.2%
Revenue -26.2%, CFFO 74.4%. Cash follows revenue
Expense Quality
Inventory growth 11.1% exceeds COGS -25.1%
CapEx growth 20.6% is >2x revenue growth -26.2%
SG&A/Gross Profit = 46.6%. Normal
Gross margin 48.5%, change -0.7pp. Stable
Cash Flow Quality
CFFO/NI = -2.49. Below 1.0
FCF $0.1B, FCF/NI = -2.24
Accruals ratio = -21.1%. Low accruals
Cash $0.1B covers 93% of debt $0.1B
Balance Sheet Health
Goodwill+Intangibles $0.1B = 16% of equity. Manageable
Debt/EBITDA = 5.6x (>4x). Financial stress
Other assets 3.8% vs revenue -26.2%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 0% YoY. Normal
Manipulation Score
M-Score = -3.94 (< -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