A

Textron Inc. — Earnings Quality Grade A

TXT · Industrials

Strong financial health

Revenue
$14.8B
2025
Net Income
$921M
2025
Gross Margin
18.2%
Free Cash Flow
$929M
01

Screening Summary

16
Passed
1
Watch
0
Failed
-2.66
M-Score
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 34 days, change -7 days YoY

A2AR vs Revenue Growth

AR growth -10.0% vs revenue growth 8.0%

A3Revenue vs CFFO

Revenue 8.0%, CFFO 29.4%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory 5.1% vs COGS 8.1%. Normal

B2CapEx vs Revenue

CapEx growth 5.2% vs revenue 8.0%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 43.5%. Normal

B4Gross Margin

Gross margin 18.2%, change -0.0pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 1.42. Profits backed by cash

C2Free Cash Flow

FCF $0.9B, FCF/NI = 1.01

C3Accruals Ratio

Accruals ratio = -2.2%. Low accruals

!
C4Cash vs Debt

Cash $2.0B covers 52% of debt $3.9B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $2.3B = 29% of equity. Manageable

D2Leverage

Debt/EBITDA = 2.3x. Healthy

D3Soft Asset Growth

Other assets 8.8% vs revenue 8.0%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change 1% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.66 (< -2.22). Unlikely manipulator

04

Beneish M-Score

Manipulation Probability-2.66
-4.0 Clean-2.22 Grey-1.78 Danger0
0.833
DSRI
AR growing faster than revenue?
1.003
GMI
Gross margin declining?
0.987
AQI
Asset quality deteriorating?
1.08
SGI
Revenue growth rate
0.979
DEPI
Depreciation slowing?
0.939
SGAI
SG&A ratio changing?
-0.0216
TATA
Accruals level
1.002
LVGI
Leverage increasing?
05

Altman Z-Score

3.84
Safe Zone
0 Distress1.102.605.0+ Safe
0.2327
Liquidity
0.319
Cumulative profit
0.0697
Operating efficiency
0.768
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10

Textron Inc. (TXT) Earnings Quality Grade A — EarningsGrade