Procter & Gamble Company (The) — Earnings Quality Grade F
PG · Consumer Defensive
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 27 days, change +0 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 0.3%, CFFO -10.2%. Cash follows revenue
Expense Quality
Inventory 7.6% vs COGS 0.8%. Normal
CapEx growth 13.6% vs revenue 0.3%. Normal
SG&A/Gross Profit = 52.6%. Normal
Gross margin 51.2%, change -0.2pp. Stable
Cash Flow Quality
CFFO/NI = 1.12. Profits backed by cash
FCF $14.0B, FCF/NI = 0.88
Accruals ratio = -1.5%. Low accruals
Cash $9.6B covers only 27% of debt $35.5B
Balance Sheet Health
Goodwill+Intangibles $63.6B = 122% of equity. Over 50%
Debt/EBITDA = 1.5x. Healthy
Other assets -5.9% vs revenue 0.3%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 2% YoY. Normal
Manipulation Score
M-Score = -2.53 (< -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 · 2026-04-10