C

Korn Ferry — Earnings Quality Grade C

KFY · Industrials

Some red flags

Revenue
$2.8B
2025
Net Income
$246M
2025
Gross Margin
88.6%
Free Cash Flow
$302M
01

Screening Summary

15
Passed
1
Watch
1
Failed
-2.57
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 75 days, change +4 days YoY

A2AR vs Revenue Growth

AR growth 4.5% vs revenue growth -1.2%

A3Revenue vs CFFO

Revenue -1.2%, CFFO 28.3%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

No material inventory

B2CapEx vs Revenue

CapEx growth 13.3% vs revenue -1.2%. Normal

!
B3SG&A Ratio

SG&A/Gross Profit = 82.5%, exceeds 70%

B4Gross Margin

Gross margin 88.6%, change +0.5pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 1.48. Profits backed by cash

C2Free Cash Flow

FCF $0.3B, FCF/NI = 1.23

C3Accruals Ratio

Accruals ratio = -3.1%. Low accruals

C4Cash vs Debt

Cash $1.0B covers debt $0.6B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $1.0B = 55% of equity. Over 50%

D2Leverage

Debt/EBITDA = 1.3x. Healthy

D3Soft Asset Growth

Other assets 16.9% vs revenue -1.2%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change 2% YoY. Normal

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
1.058
DSRI
AR growing faster than revenue?
0.995
GMI
Gross margin declining?
1.011
AQI
Asset quality deteriorating?
0.988
SGI
Revenue growth rate
0.986
DEPI
Depreciation slowing?
0.971
SGAI
SG&A ratio changing?
-0.0306
TATA
Accruals level
0.968
LVGI
Leverage increasing?
05

Altman Z-Score

4.31
Safe Zone
0 Distress1.102.605.0+ Safe
0.2058
Liquidity
0.4113
Cumulative profit
0.0946
Operating efficiency
0.9383
Leverage

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