Verizon Communications Inc. — Earnings Quality Grade F
VZ · Communication Services
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 72 days, change +1 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 2.5%, CFFO 0.6%. Cash follows revenue
Expense Quality
Inventory 8.6% vs COGS 4.9%. Normal
CapEx growth -2.9% vs revenue 2.5%. Normal
SG&A/Gross Profit = 41.5%. Normal
Gross margin 58.9%, change -0.9pp. Stable
Cash Flow Quality
CFFO/NI = 2.16. Profits backed by cash
FCF $19.7B, FCF/NI = 1.15
Accruals ratio = -4.9%. Low accruals
Cash $19.0B covers only 10% of debt $181.6B
Balance Sheet Health
Goodwill+Intangibles $190.3B = 182% of equity. Over 50%
Debt/EBITDA = 3.8x. Healthy
Other assets 17.6% vs revenue 2.5%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -0% YoY. Normal
Manipulation Score
M-Score = -2.69 (< -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