Moody's Corporation — Earnings Quality Grade F
MCO · Financial Services
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 96 days, change +3 days YoY
AR growth 12.4% vs revenue growth 8.9%
Revenue 8.9%, CFFO 2.2%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth 2.8% vs revenue 8.9%. Normal
SG&A/Gross Profit = 31.4%. Normal
Gross margin 74.4%, change +1.9pp. Stable
Cash Flow Quality
CFFO/NI = 1.18. Profits backed by cash
FCF $2.6B, FCF/NI = 1.05
Accruals ratio = -2.8%. Low accruals
Cash $2.4B covers only 33% of debt $7.4B
Balance Sheet Health
Goodwill+Intangibles $8.2B = 203% of equity. Over 50%
Debt/EBITDA = 1.9x. Healthy
Other assets -37.9% vs revenue 8.9%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 4% YoY. Normal
Manipulation Score
M-Score = -2.48 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score — Not Applicable
Moody's Corporation is a financial company. Z-Score is designed for non-financial companies.
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09