F

Knowles Corporation — Earnings Quality Grade F

KN · Technology

Major red flags

Revenue
$593M
2025
Net Income
$44M
2025
Gross Margin
43.2%
Free Cash Flow
$82M
01

Screening Summary

14
Passed
1
Watch
2
Failed
-2.65
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 63 days, change -6 days YoY

A2AR vs Revenue Growth

AR growth -2.1% vs revenue growth 7.2%

A3Revenue vs CFFO

Revenue 7.2%, CFFO -12.4%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory 5.6% vs COGS 5.7%. Normal

!
B2CapEx vs Revenue

CapEx growth 136.0% is >2x revenue growth 7.2%

B3SG&A Ratio

SG&A/Gross Profit = 55.7%. Normal

B4Gross Margin

Gross margin 43.2%, change +0.8pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 2.58. Profits backed by cash

C2Free Cash Flow

FCF $0.1B, FCF/NI = 1.85

C3Accruals Ratio

Accruals ratio = -6.6%. Low accruals

C4Cash vs Debt

Cash $0.1B covers only 40% of debt $0.1B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.4B = 53% of equity. Over 50%

D2Leverage

Debt/EBITDA = 1.2x. Healthy

D3Soft Asset Growth

Other assets -7.1% vs revenue 7.2%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change -4% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.65 (< -2.22). Unlikely manipulator

Portfolio monitoring

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04

Beneish M-Score

Manipulation Probability-2.65
-4.0 Clean-2.22 Grey-1.78 Danger0
0.914
DSRI
AR growing faster than revenue?
0.982
GMI
Gross margin declining?
1.033
AQI
Asset quality deteriorating?
1.072
SGI
Revenue growth rate
1.434
DEPI
Depreciation slowing?
0.938
SGAI
SG&A ratio changing?
-0.0664
TATA
Accruals level
0.705
LVGI
Leverage increasing?
05

Altman Z-Score

2.84
Safe Zone
0 Distress1.102.605.0+ Safe
0.1765
Liquidity
-0.5417
Cumulative profit
0.0733
Operating efficiency
2.818
Leverage

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