Keysight Technologies Inc. — Earnings Quality Grade D
KEYS · Technology
Significant concerns
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 64 days, change +1 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 8.0%, CFFO 33.9%. Cash follows revenue
Expense Quality
Inventory 2.7% vs COGS 10.4%. Normal
CapEx growth -16.9% vs revenue 8.0%. Normal
SG&A/Gross Profit = 44.2%. Normal
Gross margin 62.1%, change -0.8pp. Stable
Cash Flow Quality
CFFO/NI = 1.66. Profits backed by cash
FCF $1.3B, FCF/NI = 1.51
Accruals ratio = -4.9%. Low accruals
Cash $1.9B covers 67% of debt $2.8B
Balance Sheet Health
Goodwill+Intangibles $4.7B = 80% of equity. Over 50%
Debt/EBITDA = 1.9x. Healthy
Other assets 5.8% vs revenue 8.0%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 58% YoY
Manipulation Score
M-Score = -2.57 (< -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