ScanSource, Inc. — Earnings Quality Grade C
SCSC · Technology
Some red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO increased by 11 days
AR growth 9.3% vs revenue growth -6.7%
Revenue -6.7%, CFFO -69.8%. Cash follows revenue
Expense Quality
Inventory -5.6% vs COGS -8.0%. Normal
CapEx growth -3.1% vs revenue -6.7%. Normal
SG&A/Gross Profit = 70.2%, exceeds 70%
Gross margin 13.4%, change +1.2pp. Stable
Cash Flow Quality
CFFO/NI = 1.57. Profits backed by cash
FCF $0.1B, FCF/NI = 1.45
Accruals ratio = -2.3%. Low accruals
Cash $0.1B covers 86% of debt $0.1B
Balance Sheet Health
Goodwill+Intangibles $0.3B = 32% of equity
Debt/EBITDA = 1.1x. Healthy
Other assets -7.2% vs revenue -6.7%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 20% YoY. Normal
Manipulation Score
M-Score = -2.51 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25