Lowe's Companies, Inc. — Earnings Quality Grade F
LOW · Consumer Cyclical
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 5 days, change +4 days YoY
AR growth 1059.6% exceeds revenue growth 3.1%
Revenue 3.1%, CFFO 2.5%. Cash follows revenue
Expense Quality
Inventory -0.6% vs COGS 2.9%. Normal
CapEx growth 14.8% vs revenue 3.1%. Normal
SG&A/Gross Profit = 58.1%. Normal
Gross margin 33.5%, change +0.2pp. Stable
Cash Flow Quality
CFFO/NI = 1.48. Profits backed by cash
FCF $7.7B, FCF/NI = 1.15
Accruals ratio = -5.9%. Low accruals
Cash $1.0B covers only 2% of debt $44.7B
Balance Sheet Health
Goodwill+Intangibles $9.9B = -99% of equity. Manageable
Debt/EBITDA = 3.6x. Healthy
Other assets grew 27.8% vs revenue 3.1%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 1576% YoY
Manipulation Score
M-Score = 8.81 (> -1.78). LIKELY 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