PTC Inc. — Earnings Quality Grade F
PTC · Technology
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 133 days, change -3 days YoY
AR growth 16.1% vs revenue growth 19.2%
Revenue 19.2%, CFFO 15.7%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth -23.4% vs revenue 19.2%. Normal
SG&A/Gross Profit = 34.5%. Normal
Gross margin rose +3.1pp while AR increased and AP decreased. Fraud pattern
Cash Flow Quality
CFFO/NI = 1.18. Profits backed by cash
FCF $0.9B, FCF/NI = 1.17
Accruals ratio = -2.0%. Low accruals
Cash $0.2B covers only 13% of debt $1.4B
Balance Sheet Health
Goodwill+Intangibles $4.3B = 113% of equity. Over 50%
Debt/EBITDA = 1.2x. Healthy
Other assets grew 52.7% vs revenue 19.2%
Write-offs up 1850% YoY
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -1% YoY. Normal
Manipulation Score
M-Score = -2.36 (< -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