F

Masco Corporation — Earnings Quality Grade F

MAS · Industrials

Major red flags

Revenue
$7.6B
2025
Net Income
$810M
2025
Gross Margin
35.4%
Free Cash Flow
$866M
01

Screening Summary

16
Passed
0
Watch
1
Failed
-2.66
M-Score
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 50 days, change +1 days YoY

A2AR vs Revenue Growth

AR growth -0.7% vs revenue growth -3.4%

A3Revenue vs CFFO

Revenue -3.4%, CFFO -4.9%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory 11.5% vs COGS -2.3%. Normal

B2CapEx vs Revenue

CapEx growth -7.1% vs revenue -3.4%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 53.2%. Normal

B4Gross Margin

Gross margin 35.4%, change -0.7pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 1.26. Profits backed by cash

C2Free Cash Flow

FCF $0.9B, FCF/NI = 1.07

C3Accruals Ratio

Accruals ratio = -4.1%. Low accruals

C4Cash vs Debt

Cash $0.6B covers only 20% of debt $3.2B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.8B = -445% of equity. Manageable

D2Leverage

Debt/EBITDA = 2.3x. Healthy

D3Soft Asset Growth

Other assets -14.6% vs revenue -3.4%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change 1% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.66 (< -2.22). Unlikely manipulator

04

Beneish M-Score

Manipulation Probability-2.66
-4.0 Clean-2.22 Grey-1.78 Danger0
1.028
DSRI
AR growing faster than revenue?
1.021
GMI
Gross margin declining?
0.958
AQI
Asset quality deteriorating?
0.966
SGI
Revenue growth rate
1.067
DEPI
Depreciation slowing?
1.006
SGAI
SG&A ratio changing?
-0.0408
TATA
Accruals level
0.967
LVGI
Leverage increasing?
05

Altman Z-Score

2.73
Safe Zone
0 Distress1.102.605.0+ Safe
0.2436
Liquidity
-0.1323
Cumulative profit
0.2376
Operating efficiency
-0.0363
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09

Masco Corporation (MAS) Earnings Quality Grade F — EarningsGrade