Leidos Holdings, Inc. — Earnings Quality Grade F
LDOS · Technology
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 39 days, change -1 days YoY
AR growth 0.4% vs revenue growth 3.1%
Revenue 3.1%, CFFO 22.0%. Cash follows revenue
Expense Quality
Inventory 8.6% vs COGS 1.5%. Normal
CapEx growth -16.1% vs revenue 3.1%. Normal
SG&A/Gross Profit = 32.2%. Normal
Gross margin 18.0%, change +1.3pp. Stable
Cash Flow Quality
CFFO/NI = 1.21. Profits backed by cash
FCF $1.6B, FCF/NI = 1.12
Accruals ratio = -2.2%. Low accruals
Cash $1.1B covers only 21% of debt $5.2B
Balance Sheet Health
Goodwill+Intangibles $6.8B = 138% of equity. Over 50%
Debt/EBITDA = 2.2x. Healthy
Other assets 7.2% vs revenue 3.1%. Normal
Write-offs normal
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 3% YoY. Normal
Manipulation Score
M-Score = -2.61 (< -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 · 2026-04-09