Arthur J. Gallagher & Co. — Earnings Quality Grade F
AJG · Financial Services
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO increased by 12 days
AR growth 32.8% exceeds revenue growth 20.7%
Revenue grew 20.7% but CFFO declined -25.3%
Expense Quality
No material inventory
CapEx growth 2.1% vs revenue 20.7%. Normal
Insufficient data
Gross margin 42.6%, change +0.4pp. Stable
Cash Flow Quality
CFFO/NI = 1.29. Profits backed by cash
FCF $1.8B, FCF/NI = 1.19
Accruals ratio = -0.6%. Low accruals
Cash $1.4B covers only 10% of debt $13.5B
Balance Sheet Health
Goodwill+Intangibles $33.3B = 143% of equity. Over 50%
Debt/EBITDA = 3.7x. Healthy
Other assets 18.2% vs revenue 20.7%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles surged 98% YoY
Manipulation Score
Insufficient data
Altman Z-Score — Not Applicable
Arthur J. Gallagher & Co. is a financial company. Z-Score is designed for non-financial companies.
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09