Qnity Electronics, Inc. — Earnings Quality Grade F
Q · Technology
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 50 days, change +2 days YoY
AR growth 13.1% vs revenue growth 9.7%
Revenue 9.7%, CFFO 20.0%. Cash follows revenue
Expense Quality
Inventory 10.7% vs COGS 9.4%. Normal
CapEx growth 42.5% is >2x revenue growth 9.7%
SG&A/Gross Profit = 28.2%, excellent (<30%)
Gross margin 46.2%, change +0.1pp. Stable
Cash Flow Quality
CFFO/NI = 1.84. Profits backed by cash
FCF $1.0B, FCF/NI = 1.43
Accruals ratio = -4.1%. Low accruals
Cash $0.9B covers only 23% of debt $4.0B
Balance Sheet Health
Goodwill+Intangibles $8.6B = 122% of equity. Over 50%
Debt/EBITDA = 2.9x. Healthy
Other assets grew 363.8% vs revenue 9.7%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -0% YoY. Normal
Manipulation Score
M-Score = -4.06 (< -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