Gen Digital Inc. — Earnings Quality Grade F
GEN · Technology
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 16 days, change +0 days YoY
AR growth 4.9% vs revenue growth 3.6%
Revenue 3.6%, CFFO -40.8%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth -25.0% vs revenue 3.6%. Normal
SG&A/Gross Profit = 32.8%. Normal
Gross margin 80.3%, change -0.5pp. Stable
Cash Flow Quality
CFFO/NI = 1.90. Profits backed by cash
FCF $1.2B, FCF/NI = 1.88
Accruals ratio = -3.7%. Low accruals
Cash $1.0B covers only 12% of debt $8.3B
Balance Sheet Health
Goodwill+Intangibles $12.5B = 551% of equity. Over 50%
Debt/EBITDA = 4.1x (>4x). Financial stress
Other assets -39.4% vs revenue 3.6%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -3% YoY. Normal
Manipulation Score
M-Score = -2.56 (< -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