Paramount Skydance Corporation — Earnings Quality Grade F
PSKY · Communication Services
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 83 days, change -3 days YoY
AR growth -4.4% vs revenue growth -1.5%
Revenue -1.5%, CFFO 58.3%. Cash follows revenue
Expense Quality
Inventory 2.2% vs COGS -8.2%. Normal
CapEx growth -19.8% vs revenue -1.5%. Normal
SG&A/Gross Profit = 78.5%, exceeds 70%
Gross margin swung +5.1pp (24.5% → 29.6%)
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
FCF $0.5B, FCF/NI = -0.08
Accruals ratio = -16.0%. Low accruals
Cash $3.3B covers only 22% of debt $14.8B
Balance Sheet Health
Goodwill+Intangibles $7.8B = 67% of equity. Over 50%
Interest coverage = 1.7x (<2x). Financial stress
Other assets 4.9% vs revenue -1.5%. Normal
Write-offs surged 7286% YoY, = 99% of NI. Possible big bath
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -39% YoY. Normal
Manipulation Score
M-Score = -3.36 (< -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