B

Resources Connection, Inc. — Earnings Quality Grade B

RGP · Industrials

Generally healthy

Revenue
$551M
2025
Net Income
-$192M
2025
Gross Margin
37.6%
Free Cash Flow
$16M
01

Screening Summary

14
Passed
3
Watch
0
Failed
-6.17
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 66 days, change +3 days YoY

A2AR vs Revenue Growth

AR growth -8.6% vs revenue growth -12.9%

A3Revenue vs CFFO

Revenue -12.9%, CFFO -13.8%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

No material inventory

!
B2CapEx vs Revenue

CapEx growth 137.2% is >2x revenue growth -12.9%

!
B3SG&A Ratio

SG&A/Gross Profit = 94.9%, exceeds 70%

B4Gross Margin

Gross margin 37.6%, change -1.3pp. Stable

03

Cash Flow Quality

!
C1CFFO vs Net Income

CFFO/NI = -0.10. Below 1.0

C2Free Cash Flow

FCF $0.0B, FCF/NI = -0.08

C3Accruals Ratio

Accruals ratio = -69.1%. Low accruals

C4Cash vs Debt

Cash $0.1B covers debt $0.0B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.0B = 23% of equity. Manageable

D2Leverage

Debt/EBITDA = 2.4x. Healthy

D3Soft Asset Growth

Other assets -0.1% vs revenue -12.9%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change -79% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -6.17 (< -2.22). Unlikely manipulator

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04

Beneish M-Score

Manipulation Probability-6.17
-4.0 Clean-2.22 Grey-1.78 Danger0
1.049
DSRI
AR growing faster than revenue?
1.034
GMI
Gross margin declining?
0.488
AQI
Asset quality deteriorating?
0.871
SGI
Revenue growth rate
1.568
DEPI
Depreciation slowing?
1.104
SGAI
SG&A ratio changing?
-0.6915
TATA
Accruals level
1.746
LVGI
Leverage increasing?
05

Altman Z-Score

3.75
Safe Zone
0 Distress1.102.605.0+ Safe
0.421
Liquidity
-0.399
Cumulative profit
0.009
Operating efficiency
2.1216
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25