Adobe Inc. — Earnings Quality Grade C
ADBE · Technology
Some red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 36 days, change +1 days YoY
AR growth 13.1% vs revenue growth 10.5%
Revenue 10.5%, CFFO 24.5%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth -2.2% vs revenue 10.5%. Normal
SG&A/Gross Profit = 38.0%. Normal
Gross margin 89.3%, change +0.2pp. Stable
Cash Flow Quality
CFFO/NI = 1.41. Profits backed by cash
FCF $9.9B, FCF/NI = 1.38
Accruals ratio = -9.8%. Low accruals
Cash $6.6B covers 99% of debt $6.6B
Balance Sheet Health
Goodwill+Intangibles $13.4B = 115% of equity. Over 50%
Debt/EBITDA = 0.7x. Healthy
Other assets 3.6% vs revenue 10.5%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -2% YoY. Normal
Manipulation Score
M-Score = -2.85 (< -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