Veralto Corp — Earnings Quality Grade C
VLTO · Industrials
Some red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 59 days, change +2 days YoY
AR growth 10.5% exceeds revenue growth 6.0%
Revenue 6.0%, CFFO 23.1%. Cash follows revenue
Expense Quality
Inventory 6.6% vs COGS 5.6%. Normal
CapEx growth 14.5% vs revenue 6.0%. Normal
SG&A/Gross Profit = 53.2%. Normal
Gross margin 59.9%, change +0.2pp. Stable
Cash Flow Quality
CFFO/NI = 1.15. Profits backed by cash
FCF $1.0B, FCF/NI = 1.08
Accruals ratio = -1.8%. Low accruals
Cash $2.0B covers 71% of debt $2.9B
Balance Sheet Health
Goodwill+Intangibles $3.4B = 108% of equity. Over 50%
Debt/EBITDA = 2.1x. Healthy
Other assets 15.7% vs revenue 6.0%. Normal
Write-offs normal
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 4% YoY. Normal
Manipulation Score
M-Score = -2.47 (< -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