Xerox Holdings Corporation — Earnings Quality Grade F
XRX · Industrials
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO increased by 12 days
AR outpaced revenue for 2 consecutive years
Revenue grew 12.9% but CFFO declined -56.2%
Small-cap context: Small-cap revenue/CFFO ratio is sensitive to growth-stage working-capital draws.
Expense Quality
Inventory growth 46.2% exceeds COGS 20.2%
CapEx growth 106.8% is >2x revenue growth 12.9%
SG&A/Gross Profit = 86.5%, exceeds 70%
Gross margin 27.1%, change -4.4pp. Stable
Cash Flow Quality
CFFO/NI = -0.22. Below 1.0
FCF $0.1B, FCF/NI = -0.13
Accruals ratio = -12.8%. Low accruals
Cash $0.5B covers only 11% of debt $4.6B
Balance Sheet Health
Goodwill+Intangibles $3.3B = 500% of equity. Over 50%
Debt/EBITDA = 50.3x (>4x). Interest coverage = -0.2x (<2x). Financial stress
Other assets 7.2% vs revenue 12.9%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 47% YoY
Manipulation Score
M-Score = -2.66 (< -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