PPG Industries, Inc. — Earnings Quality Grade F
PPG · Basic Materials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 64 days, change +7 days YoY
AR growth 12.4% exceeds revenue growth 0.2%
Revenue 0.2%, CFFO 36.7%. Cash follows revenue
Expense Quality
Inventory 8.1% vs COGS 0.7%. Normal
CapEx growth 7.9% vs revenue 0.2%. Normal
SG&A/Gross Profit = 52.4%. Normal
Gross margin 41.3%, change -0.3pp. Stable
Cash Flow Quality
CFFO/NI = 1.23. Profits backed by cash
FCF $1.2B, FCF/NI = 0.74
Accruals ratio = -1.7%. Low accruals
Cash $2.2B covers only 28% of debt $7.9B
Balance Sheet Health
Goodwill+Intangibles $8.1B = 102% of equity. Over 50%
Debt/EBITDA = 2.8x. Healthy
Other assets 4.9% vs revenue 0.2%. Normal
Write-offs normal
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 7% YoY. Normal
Manipulation Score
M-Score = -2.46 (< -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