Stanley Black & Decker, Inc. — Earnings Quality Grade F
SWK · Industrials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 19 days, change -4 days YoY
AR growth -18.5% vs revenue growth -1.5%
Revenue -1.5%, CFFO -12.3%. Cash follows revenue
Expense Quality
Inventory -8.4% vs COGS -2.8%. Normal
CapEx growth -19.9% vs revenue -1.5%. Normal
SG&A/Gross Profit = 72.2%, exceeds 70%
Gross margin 30.3%, change +0.9pp. Stable
Cash Flow Quality
CFFO/NI = 2.42. Profits backed by cash
FCF $0.7B, FCF/NI = 1.71
Accruals ratio = -2.7%. Low accruals
Cash $0.3B covers only 5% of debt $6.0B
Balance Sheet Health
Goodwill+Intangibles $10.4B = 115% of equity. Over 50%
Debt/EBITDA = 4.1x (>4x). Financial stress
Other assets grew 69.8% vs revenue -1.5%
Write-offs surged 162% YoY, = 47% of NI. Possible big bath
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -11% YoY. Normal
Manipulation Score
M-Score = -2.77 (< -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