Edwards Lifesciences Corporatio — Earnings Quality Grade C
EW · Healthcare
Some red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 40 days, change -1 days YoY
AR growth 8.3% vs revenue growth 11.5%
Revenue 11.5%, CFFO 194.2%. Cash follows revenue
Expense Quality
Inventory 3.6% vs COGS 19.4%. Normal
CapEx growth -7.9% vs revenue 11.5%. Normal
SG&A/Gross Profit = 44.1%. Normal
Gross margin 78.0%, change -1.4pp. Stable
Cash Flow Quality
CFFO/NI = 1.49. Profits backed by cash
FCF < 50% of Net Income for 2 years
Accruals ratio = -3.8%. Low accruals
Cash $4.2B covers debt $0.7B
Balance Sheet Health
Goodwill+Intangibles $2.9B = 28% of equity. Manageable
Debt/EBITDA = 0.5x. Healthy
Other assets -17.5% vs revenue 11.5%. Normal
Write-offs normal
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -2% YoY. Normal
Manipulation Score
M-Score = -2.62 (< -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 · 2026-04-09