Apple Inc. — Earnings Quality Grade C
AAPL · Technology
Some red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 35 days, change +4 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 6.4%, CFFO -5.7%. Cash follows revenue
Expense Quality
Inventory -21.5% vs COGS 5.0%. Normal
CapEx growth 34.6% is >2x revenue growth 6.4%
SG&A/Gross Profit = 14.1%, excellent (<30%)
Gross margin 46.9%, change +0.7pp. Stable
Cash Flow Quality
CFFO/NI = 1.00. Profits backed by cash
FCF $98.8B, FCF/NI = 0.88
Accruals ratio = 0.1%. Low accruals
Cash $54.7B covers 55% of debt $98.7B
Balance Sheet Health
No goodwill. Clean balance sheet
Debt/EBITDA = 0.7x. Healthy
Other assets 13.8% vs revenue 6.4%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
No goodwill
Manipulation Score
M-Score = -2.29 (< -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 · 2026-04-08