L3Harris Technologies, Inc. — Earnings Quality Grade F
LHX · Industrials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 23 days, change +5 days YoY
AR growth 27.9% exceeds revenue growth 2.5%
Revenue 2.5%, CFFO 21.4%. Cash follows revenue
Expense Quality
Inventory -8.3% vs COGS 2.8%. Normal
CapEx growth 3.9% vs revenue 2.5%. Normal
SG&A/Gross Profit = 39.7%. Normal
Gross margin 25.7%, change -0.2pp. Stable
Cash Flow Quality
CFFO/NI = 1.93. Profits backed by cash
FCF $2.7B, FCF/NI = 1.67
Accruals ratio = -3.6%. Low accruals
Cash $1.1B covers only 10% of debt $11.1B
Balance Sheet Health
Goodwill+Intangibles $26.5B = 135% of equity. Over 50%
Debt/EBITDA = 3.0x. Healthy
Other assets 15.5% vs revenue 2.5%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -5% YoY. Normal
Manipulation Score
M-Score = -2.39 (< -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