Block, Inc. — Earnings Quality Grade F
XYZ · Technology
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 64 days, change +8 days YoY
AR growth 14.9% exceeds revenue growth 0.3%
Revenue 0.3%, CFFO 51.1%. Cash follows revenue
Expense Quality
Inventory growth 50.8% far exceeds COGS -9.2%, margin rising. Fraud signal
CapEx growth 0.7% vs revenue 0.3%. Normal
SG&A/Gross Profit = 41.2%. Normal
Gross margin rose +6.0pp while AR increased and AP decreased. Fraud pattern
Cash Flow Quality
CFFO/NI = 1.98. Profits backed by cash
FCF $2.4B, FCF/NI = 1.86
Accruals ratio = -3.2%. Low accruals
Cash $12.0B covers debt $9.0B
Balance Sheet Health
Goodwill+Intangibles $13.1B = 59% of equity. Over 50%
Debt/EBITDA = 2.6x. Healthy
Other assets grew 64.4% vs revenue 0.3%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 2% YoY. Normal
Manipulation Score
M-Score = -2.62 (< -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 · 2026-04-09