D

Keysight Technologies Inc. — Earnings Quality Grade D

KEYS · Technology

Significant concerns

Revenue
$5.4B
2025
Net Income
$850M
2025
Gross Margin
62.1%
Free Cash Flow
$1.3B
01

Screening Summary

13
Passed
2
Watch
2
Failed
-2.57
M-Score

Management Signals

View all →
Routine2026-03-13
John Page · senior vice presidentResignation
SEC
Routine2025-11-20
Keith Jensen · directorAppointment
Standard appointment
SEC
Watch2025-11-20
Keith Jensen · Chief Financial OfficerRetirement
CFO retirement at Grade D company
SEC
View management analysis in KEYS deep report →

Source: SEC EDGAR 8-K Item 5.02, with exhibit links when available

02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 64 days, change +1 days YoY

A2AR vs Revenue Growth

AR outpaced revenue for 2 consecutive years

A3Revenue vs CFFO

Revenue 8.0%, CFFO 33.9%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory 2.7% vs COGS 10.4%. Normal

B2CapEx vs Revenue

CapEx growth -16.9% vs revenue 8.0%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 44.2%. Normal

B4Gross Margin

Gross margin 62.1%, change -0.8pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 1.66. Profits backed by cash

C2Free Cash Flow

FCF $1.3B, FCF/NI = 1.51

C3Accruals Ratio

Accruals ratio = -4.9%. Low accruals

!
C4Cash vs Debt

Cash $1.9B covers 67% of debt $2.8B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $4.7B = 80% of equity. Over 50%

D2Leverage

Debt/EBITDA = 1.9x. Healthy

D3Soft Asset Growth

Other assets 5.8% vs revenue 8.0%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

!
E2Goodwill Surge

Goodwill+Intangibles surged 58% YoY

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.57 (< -2.22). Unlikely manipulator

Portfolio monitoring

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04

Beneish M-Score

Manipulation Probability-2.57
-4.0 Clean-2.22 Grey-1.78 Danger0
1.015
DSRI
AR growing faster than revenue?
1.014
GMI
Gross margin declining?
1.213
AQI
Asset quality deteriorating?
1.08
SGI
Revenue growth rate
1
DEPI
Depreciation slowing?
0.979
SGAI
SG&A ratio changing?
-0.0495
TATA
Accruals level
1.118
LVGI
Leverage increasing?
05

Altman Z-Score

5.33
Safe Zone
0 Distress1.102.605.0+ Safe
0.221
Liquidity
0.6261
Cumulative profit
0.1042
Operating efficiency
1.0851
Leverage

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