Xylem Inc. — Earnings Quality Grade C
XYL · Industrials
Some red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 71 days, change -0 days YoY
AR growth 5.5% vs revenue growth 5.5%
Revenue 5.5%, CFFO -1.7%. Cash follows revenue
Expense Quality
Inventory -1.3% vs COGS 3.9%. Normal
CapEx growth 3.1% vs revenue 5.5%. Normal
SG&A/Gross Profit = 55.3%. Normal
Gross margin 38.5%, change +0.9pp. Stable
Cash Flow Quality
CFFO/NI = 1.30. Profits backed by cash
FCF $0.9B, FCF/NI = 0.95
Accruals ratio = -1.6%. Low accruals
Cash $1.5B covers 72% of debt $2.1B
Balance Sheet Health
Goodwill+Intangibles $10.6B = 92% of equity. Over 50%
Debt/EBITDA = 1.2x. Healthy
Other assets grew 39.1% vs revenue 5.5%
Write-offs normal
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 2% YoY. Normal
Manipulation Score
M-Score = -2.49 (< -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