C
Palantir Technologies Inc. — Earnings Quality Grade C
PLTR · Technology
Some red flags
Revenue
$4.5B
2025
Net Income
$1.6B
2025
Gross Margin
82.4%
Free Cash Flow
$2.1B
01
Screening Summary
13
Passed
3
Watch
1
Failed
-1.89
M-Score
02
Financial Trends
Revenue & Net Income ($B)
Margins (%)
03
18-Point Screening
01
Revenue Quality
!
A1DSO Change
DSO increased by 12 days
✗
A2AR vs Revenue Growth
AR outpaced revenue for 2 consecutive years
✓
A3Revenue vs CFFO
Revenue 56.2%, CFFO 85.0%. Cash follows revenue
02
Expense Quality
✓
B1Inventory vs COGS
No material inventory
!
B2CapEx vs Revenue
CapEx growth 168.2% is >2x revenue growth 56.2%
✓
B3SG&A Ratio
SG&A/Gross Profit = 46.5%. Normal
✓
B4Gross Margin
Gross margin 82.4%, change +2.1pp. Stable
03
Cash Flow Quality
✓
C1CFFO vs Net Income
CFFO/NI = 1.31. Profits backed by cash
✓
C2Free Cash Flow
FCF $2.1B, FCF/NI = 1.29
✓
C3Accruals Ratio
Accruals ratio = -5.7%. Low accruals
✓
C4Cash vs Debt
Cash $7.2B covers debt $0.2B
04
Balance Sheet Health
✓
D1Goodwill + Intangibles
No goodwill. Clean balance sheet
✓
D2Leverage
Debt/EBITDA = 0.2x. Healthy
✓
D3Soft Asset Growth
Other assets 74.6% vs revenue 56.2%. Normal
—
D4Asset Impairment
No write-off data
05
Acquisition Risk
✓
E1Serial Acquirer FCF
FCF after acquisitions positive
✓
E2Goodwill Surge
No goodwill
06
Manipulation Score
!
F1Beneish M-Score
M-Score = -1.89 (grey zone)
04
Beneish M-Score
Manipulation Probability-1.89
-4.0 Clean-2.22 Grey-1.78 Danger0
1.16
DSRI
AR growing faster than revenue?
0.974
GMI
Gross margin declining?
1.244
AQI
Asset quality deteriorating?
1.562
SGI
Revenue growth rate
1.236
DEPI
Depreciation slowing?
0.741
SGAI
SG&A ratio changing?
-0.0572
TATA
Accruals level
0.841
LVGI
Leverage increasing?
05
Altman Z-Score
10.55
Safe Zone0 Distress1.102.605.0+ Safe
0.807
Liquidity
-0.4003
Cumulative profit
0.1589
Operating efficiency
5.2304
Leverage
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-08