⚡ AllWallSt Institutional Terminal Suite
Marcus Wolfe Forensic Accounting Desk • Primary SEC EDGAR Audit
Marcus Wolfe’s Forensic Accounting Radar
Systemic earnings quality scanner, Sloan accrual distortion models, cash-flow-to-net-income conversion, and working-capital stress testing across 56 covered operating corporations.
🛡️ Pristine Quality
40 / 56
71% of coverage with zero accounting red flags
⚠️ Active Watchlist
16 Equities
Flagged for inventory bloat, AR spikes, or accruals
💎 Cash Compounders
28 Leaders
OCF/NI ≥ 1.25x with negative Sloan accruals
⚖️ Median Sloan Accruals
-3.72%
Coverage Basket Accrual Ratio (% of Assets)
⚠️ Active Forensic Watchlist
Working Capital & Accruals
💎 Elite Cash-Flow Compounders
OCF > GAAP Net Income
| Security & GICS Sector ↕ | Forensic Risk Tier ↕ | Flags & Diagnostic Finding ↕ | Cash Conversion (OCF/NI) ↕ | Sloan Accrual Ratio ↕ | Working Capital Health | Solvency Cushion ↕ | Primary SEC EDGAR | Audit Note |
|---|---|---|---|---|---|---|---|---|
SMCISELL Super Micro Computer, Inc. Technology • Computer Hardware | ☣️ Critical Alert | 5 Flags ⚠️ Negative OCF vs positive GAAP profit; AR growth outpaced revenue (+98.5% spread); Sloan accruals +30.2% of assets (>10% limit); Inventory growth outpaced COGS (+97.3% spread) | -3.05x OCF: -$6.81B / NI: $2.23B | +30.19%Severe Bloat | AR Spike (+98.5%)Inv Bloat (+97.3%) | -$1.86B Net Debt Cash: $6.90B • Debt: $8.76B | Audit Note → | |
AVGOHOLD Broadcom Inc. Technology • Semiconductors | 🚨 Elevated Concern | 2 Flag ⚠️ AR growth outpaced revenue (+68.0% spread); Inventory growth outpaced COGS (+21.0% spread) | 1.19x OCF: $27.54B / NI: $23.13B | -2.58%Cash Superior | AR Spike (+68.0%)Inv Bloat (+21.0%) | -$41.16B Net Debt Cash: $23.98B • Debt: $65.14B | Audit Note → | |
AAPLHOLD Apple Inc. Technology • Consumer Electronics | ⚠️ Moderate Watchlist | 1 Flag ⚠️ Inventory growth outpaced COGS (+143.3% spread) | 1.10x OCF: $145.10B / NI: $132.18B | -3.19%Cash Superior | AR NormalInv Bloat (+143.3%) | -$23.39B Net Debt Cash: $56.72B • Debt: $80.11B | Audit Note → | |
AMGNHOLD Amgen Inc. Healthcare • Biotechnology | ⚠️ Moderate Watchlist | 1 Flag ⚠️ AR growth outpaced revenue (+31.2% spread) | 1.29x OCF: $9.96B / NI: $7.71B | -2.48%Cash Superior | AR Spike (+31.2%)Inventory OK | -$41.41B Net Debt Cash: $13.19B • Debt: $54.60B | Audit Note → | |
COINHOLD Coinbase Global, Inc. Financial Services • Digital Asset Exchange | ⚠️ Moderate Watchlist | 1 Flag ⚠️ AR growth outpaced revenue (+79.2% spread) | 1.93x OCF: $2.43B / NI: $1.26B | -3.93%Cash Superior | AR Spike (+79.2%)Inventory OK | +$989.4M Net Cash Cash: $8.82B • Debt: $7.83B | Audit Note → | |
CRWVHOLD CoreWeave Inc. Technology • AI Cloud Infrastructure | ⚠️ Moderate Watchlist | 1 Flag ⚠️ AR growth outpaced revenue (+492.0% spread) | -2.62x OCF: $3.06B / NI: -$1.17B | -8.57%Cash Superior | AR Spike (+492.0%)Inventory OK | -$24.28B Net Debt Cash: $5.54B • Debt: $29.82B | Audit Note → | |
FCXHOLD Freeport-McMoRan Inc. Basic Materials • Copper Mining | ⚠️ Moderate Watchlist | 1 Flag ⚠️ AR growth outpaced revenue (+43.8% spread) | 2.55x OCF: $5.61B / NI: $2.20B | -5.86%Cash Superior | AR Spike (+43.8%)Inventory OK | -$6.16B Net Debt Cash: $4.34B • Debt: $10.49B | Audit Note → | |
GOOGLHOLD Alphabet Inc. Technology • Internet Services | ⚠️ Moderate Watchlist | 1 Flag ⚠️ Inventory growth outpaced COGS (+117.1% spread) | 1.25x OCF: $164.71B / NI: $132.17B | -5.47%Cash Superior | AR NormalInv Bloat (+117.1%) | +$205.81B Net Cash Cash: $265.10B • Debt: $59.29B | Audit Note → | |
IRENHOLD IREN Limited Technology • HPC & AI Data Centers | ⚠️ Moderate Watchlist | 1 Flag ⚠️ AR growth outpaced revenue (+93.7% spread) | -2.99x OCF: $2.10B / NI: -$702.6M | -17.75%Cash Superior | AR Spike (+93.7%)Inventory OK | -$4.18B Net Debt Cash: $3.66B • Debt: $7.84B | Audit Note → | |
LLYHOLD Eli Lilly and Company Healthcare • Pharmaceuticals | ⚠️ Moderate Watchlist | 1 Flag ⚠️ Inventory growth outpaced COGS (+49.8% spread) | 0.81x OCF: $16.81B / NI: $20.64B | +3.40%Normal | AR NormalInv Bloat (+49.8%) | -$37.62B Net Debt Cash: $4.89B • Debt: $42.50B | Audit Note → | |
MSFTHOLD Microsoft Corporation Technology • Software Infrastructure | ⚠️ Moderate Watchlist | 1 Flag ⚠️ Inventory growth outpaced COGS (+27.8% spread) | 1.37x OCF: $182.94B / NI: $133.75B | -6.49%Cash Superior | AR NormalInv Bloat (+27.8%) | +$7.68B Net Cash Cash: $64.51B • Debt: $56.83B | Audit Note → | |
MSTRHOLD MicroStrategy Incorporated Technology • Enterprise Software & Treasury | ⚠️ Moderate Watchlist | 1 Flag ⚠️ Clean GAAP conversion; zero accrual or working-capital flags | 0.02x OCF: -$67.2M / NI: -$3.85B | -6.13%Cash Superior | AR NormalInventory OK | -$2.33B Net Debt Cash: $5.91B • Debt: $8.24B | Audit Note → | |
NVDAHOLD NVIDIA Corporation Technology • Semiconductors | ⚠️ Moderate Watchlist | 1 Flag ⚠️ Inventory growth outpaced COGS (+20.9% spread) | 0.86x OCF: $102.72B / NI: $120.07B | +8.39%Moderate | AR NormalInv Bloat (+20.9%) | +$51.43B Net Cash Cash: $62.47B • Debt: $11.04B | Audit Note → | |
PLTRHOLD Palantir Technologies Inc. Technology • Software Infrastructure | ⚠️ Moderate Watchlist | 1 Flag ⚠️ AR growth outpaced revenue (+25.0% spread) | 1.31x OCF: $2.13B / NI: $1.63B | -5.72%Cash Superior | AR Spike (+25.0%)Inventory OK | +$10.33B Net Cash Cash: $10.56B • Debt: $229.3M | Audit Note → | |
QCOMBUY QUALCOMM Incorporated Technology • Semiconductors | ⚠️ Moderate Watchlist | 1 Flag ⚠️ Inventory growth outpaced COGS (+29.9% spread) | 0.82x OCF: $11.14B / NI: $13.63B | +4.08%Normal | AR NormalInv Bloat (+29.9%) | -$7.43B Net Debt Cash: $7.68B • Debt: $15.11B | Audit Note → | |
XOMHOLD ExxonMobil Holdings Corporation Energy • Oil & Gas Integrated | ⚠️ Moderate Watchlist | 1 Flag ⚠️ Inventory growth outpaced COGS (+15.6% spread) | 1.80x OCF: $51.97B / NI: $28.84B | -5.15%Cash Superior | AR NormalInv Bloat (+15.6%) | -$31.38B Net Debt Cash: $12.15B • Debt: $43.54B | Audit Note → | |
ABBVBUY AbbVie Inc. Healthcare • Pharmaceuticals | 🛡️ Pristine Quality | 0 Clean ✓ Cash compounder: OCF exceeds GAAP profit (4.50x) | 4.50x OCF: $19.03B / NI: $4.23B | -11.05%Cash Superior | AR NormalInventory OK | -$56.72B Net Debt Cash: $10.77B • Debt: $67.50B | Audit Note → | |
ABTSELL Abbott Laboratories Healthcare • Medical Devices | 🛡️ Pristine Quality | 0 Clean ✓ Cash compounder: OCF exceeds GAAP profit (1.47x) | 1.47x OCF: $9.57B / NI: $6.52B | -3.51%Cash Superior | AR NormalInventory OK | -$9.56B Net Debt Cash: $4.30B • Debt: $13.86B | Audit Note → | |
AMDBUY Advanced Micro Devices, Inc. Technology • Semiconductors | 🛡️ Pristine Quality | 0 Clean ✓ Cash compounder: OCF exceeds GAAP profit (1.78x) | 1.78x OCF: $7.71B / NI: $4.33B | -4.39%Cash Superior | AR NormalInventory OK | +$11.93B Net Cash Cash: $15.78B • Debt: $3.85B | Audit Note → | |
AMZNBUY Amazon.com, Inc. Consumer Discretionary • Internet Retail | 🛡️ Pristine Quality | 0 Clean ✓ Cash compounder: OCF exceeds GAAP profit (1.80x) | 1.80x OCF: $139.51B / NI: $77.67B | -7.56%Cash Superior | AR NormalInventory OK | -$38.76B Net Debt Cash: $114.23B • Debt: $152.99B | Audit Note → | |
ARMHOLD Arm Holdings plc Technology • Semiconductors | 🛡️ Pristine Quality | 0 Clean ✓ Cash compounder: OCF exceeds GAAP profit (1.69x) | 1.69x OCF: $1.52B / NI: $904.0M | -5.79%Cash Superior | AR NormalInventory OK | +$3.16B Net Cash Cash: $3.62B • Debt: $457.0M | Audit Note → | |
ASMLHOLD ASML Holding N.V. Technology • Semiconductor Equipment | 🛡️ Pristine Quality | 0 Clean ✓ Cash compounder: OCF exceeds GAAP profit (2.36x) | 2.36x OCF: $22.73B / NI: $9.61B | -25.94%Cash Superior | AR NormalInventory OK | +$8.34B Net Cash Cash: $12.74B • Debt: $4.39B | Audit Note → | |
BASELL The Boeing Company Industrials • Aerospace & Defense | 🛡️ Pristine Quality | 0 Clean ✓ Clean GAAP conversion; zero accrual or working-capital flags | 0.48x OCF: $1.06B / NI: $2.23B | +0.70%Normal | AR NormalInventory OK | -$33.76B Net Debt Cash: $20.67B • Debt: $54.43B | Audit Note → | |
BACHOLD Bank of America Corporation Financial Services • Diversified Banking | 🛡️ Pristine Quality | 0 Clean ✓ Clean GAAP conversion; zero accrual or working-capital flags | 0.41x OCF: $12.61B / NI: $30.51B | +0.52%Normal | AR NormalInventory OK | +$454.77B Net Cash Cash: $820.67B • Debt: $365.90B | Audit Note → | |
CARRBUY Carrier Global Corporation Industrials • Building Products | 🛡️ Pristine Quality | 0 Clean ✓ Cash compounder: OCF exceeds GAAP profit (1.69x) | 1.69x OCF: $2.51B / NI: $1.48B | -2.77%Cash Superior | AR NormalInventory OK | -$10.90B Net Debt Cash: $1.35B • Debt: $12.25B | Audit Note → | |
CEGSELL Constellation Energy Corporation Utilities • Nuclear Energy | 🛡️ Pristine Quality | 0 Clean ✓ Cash compounder: OCF exceeds GAAP profit (1.83x) | 1.83x OCF: $4.24B / NI: $2.32B | -3.35%Cash Superior | AR NormalInventory OK | -$8.29B Net Debt Cash: $697.0M • Debt: $8.99B | Audit Note → | |
COPBUY ConocoPhillips Energy • Oil & Gas E&P | 🛡️ Pristine Quality | 0 Clean ✓ Cash compounder: OCF exceeds GAAP profit (2.48x) | 2.48x OCF: $19.80B / NI: $7.99B | -9.68%Cash Superior | AR NormalInventory OK | -$15.75B Net Debt Cash: $7.69B • Debt: $23.44B | Audit Note → | |
CRWDHOLD CrowdStrike Holdings, Inc. Technology • Cybersecurity | 🛡️ Pristine Quality | 0 Clean ✓ Clean GAAP conversion; zero accrual or working-capital flags | -9.92x OCF: $1.61B / NI: -$162.5M | -16.01%Cash Superior | AR NormalInventory OK | +$4.19B Net Cash Cash: $5.01B • Debt: $820.1M | Audit Note → | |
EQIXSELL Equinix, Inc. Real Estate • Data Center REITs | 🛡️ Pristine Quality | 0 Clean ✓ Cash compounder: OCF exceeds GAAP profit (2.90x) | 2.90x OCF: $3.91B / NI: $1.35B | -6.38%Cash Superior | AR NormalInventory OK | -$20.36B Net Debt Cash: $2.36B • Debt: $22.73B | Audit Note → | |
FSLRBUY First Solar, Inc. Energy • Solar Energy | 🛡️ Pristine Quality | 0 Clean ✓ Cash compounder: OCF exceeds GAAP profit (1.35x) | 1.35x OCF: $2.06B / NI: $1.53B | -3.97%Cash Superior | AR NormalInventory OK | +$968.7M Net Cash Cash: $1.62B • Debt: $655.3M | Audit Note → | |
GEHOLD GE Aerospace Industrials • Aerospace & Defense | 🛡️ Pristine Quality | 0 Clean ✓ Clean GAAP conversion; zero accrual or working-capital flags | 0.98x OCF: $8.54B / NI: $8.70B | +0.13%Normal | AR NormalInventory OK | -$10.69B Net Debt Cash: $9.80B • Debt: $20.50B | Audit Note → | |
GSHOLD The Goldman Sachs Group, Inc. Financial Services • Investment Banking | 🛡️ Pristine Quality | 0 Clean ✓ Basel III repo/deposit settlement swing (Regulated Bank) | -2.63x OCF: -$45.15B / NI: $17.18B | +3.44%Normal | AR Spike (+27.1%)Inventory OK | +$776.76B Net Cash Cash: $1.16T • Debt: $386.15B | Audit Note → | |
HDBUY The Home Depot, Inc. Consumer Discretionary • Home Improvement Retail | 🛡️ Pristine Quality | 0 Clean ✓ Cash compounder: OCF exceeds GAAP profit (1.15x) | 1.15x OCF: $16.32B / NI: $14.16B | -2.06%Cash Superior | AR NormalInventory OK | -$63.27B Net Debt Cash: $2.08B • Debt: $65.35B | Audit Note → | |
HONSELL Honeywell International Inc. Industrials • Diversified Industrials | 🛡️ Pristine Quality | 0 Clean ✓ Cash compounder: OCF exceeds GAAP profit (1.36x) | 1.36x OCF: $6.41B / NI: $4.73B | -2.28%Cash Superior | AR NormalInventory OK | -$29.38B Net Debt Cash: $6.19B • Debt: $35.56B | Audit Note → | |
INTCSELL Intel Corporation Technology • Semiconductors | 🛡️ Pristine Quality | 0 Clean ✓ Clean GAAP conversion; zero accrual or working-capital flags | -36.32x OCF: $9.70B / NI: -$267.0M | -4.71%Cash Superior | AR NormalInventory OK | +$7.42B Net Cash Cash: $54.00B • Debt: $46.59B | Audit Note → | |
ISRGHOLD Intuitive Surgical, Inc. Healthcare • Medical Devices | 🛡️ Pristine Quality | 0 Clean ✓ Clean GAAP conversion; zero accrual or working-capital flags | 1.02x OCF: $3.03B / NI: $2.96B | -0.36%Cash Superior | AR NormalInventory OK | +$3.96B Net Cash Cash: $4.04B • Debt: $87.0M | Audit Note → | |
JNJBUY Johnson & Johnson Healthcare • Pharmaceuticals | 🛡️ Pristine Quality | 0 Clean ✓ Clean GAAP conversion; zero accrual or working-capital flags | 0.92x OCF: $24.53B / NI: $26.80B | +1.14%Normal | AR NormalInventory OK | -$30.71B Net Debt Cash: $17.23B • Debt: $47.93B | Audit Note → | |
JPMHOLD JPMorgan Chase & Co. Financial Services • Diversified Banking | 🛡️ Pristine Quality | 0 Clean ✓ Basel III repo/deposit settlement swing (Regulated Bank) | -2.59x OCF: -$147.78B / NI: $57.05B | +4.63%Normal | AR NormalInventory OK | +$1.09T Net Cash Cash: $1.59T • Debt: $499.98B | Audit Note → | |
KOHOLD The Coca-Cola Company Consumer Defensive • Beverages | 🛡️ Pristine Quality | 0 Clean ✓ Clean GAAP conversion; zero accrual or working-capital flags | 0.57x OCF: $7.41B / NI: $13.11B | +5.44%Moderate | AR NormalInventory OK | -$28.90B Net Debt Cash: $16.60B • Debt: $45.49B | Audit Note → | |
LMTBUY Lockheed Martin Corporation Industrials • Aerospace & Defense | 🛡️ Pristine Quality | 0 Clean ✓ Cash compounder: OCF exceeds GAAP profit (1.71x) | 1.71x OCF: $8.56B / NI: $5.02B | -5.92%Cash Superior | AR NormalInventory OK | -$15.74B Net Debt Cash: $5.96B • Debt: $21.70B | Audit Note → | |
MASELL Mastercard Incorporated Financial Services • Credit Services | 🛡️ Pristine Quality | 0 Clean ✓ Cash compounder: OCF exceeds GAAP profit (1.18x) | 1.18x OCF: $17.65B / NI: $14.97B | -4.95%Cash Superior | AR NormalInventory OK | -$8.54B Net Debt Cash: $10.46B • Debt: $19.00B | Audit Note → | |
MCDBUY McDonald's Corporation Consumer Discretionary • Restaurants | 🛡️ Pristine Quality | 0 Clean ✓ Cash compounder: OCF exceeds GAAP profit (1.23x) | 1.23x OCF: $10.55B / NI: $8.56B | -3.34%Cash Superior | AR NormalInventory OK | -$53.99B Net Debt Cash: $822.0M • Debt: $54.81B | Audit Note → | |
METAHOLD Meta Platforms, Inc. Technology • Internet Media | 🛡️ Pristine Quality | 0 Clean ✓ Cash compounder: OCF exceeds GAAP profit (1.92x) | 1.92x OCF: $115.80B / NI: $60.46B | -15.12%Cash Superior | AR NormalInventory OK | -$1.45B Net Debt Cash: $82.45B • Debt: $83.90B | Audit Note → | |
MSHOLD Morgan Stanley Financial Services • Investment Banking | 🛡️ Pristine Quality | 0 Clean ✓ Basel III repo/deposit settlement swing (Regulated Bank) | -1.06x OCF: -$17.89B / NI: $16.86B | +2.45%Normal | AR Spike (+18.7%)Inventory OK | +$368.54B Net Cash Cash: $739.08B • Debt: $370.54B | Audit Note → | |
NFLXHOLD Netflix, Inc. Communication Services • Streaming & Entertainment | 🛡️ Pristine Quality | 0 Clean ✓ Clean GAAP conversion; zero accrual or working-capital flags | 0.92x OCF: $10.15B / NI: $10.98B | +1.50%Normal | AR NormalInventory OK | -$6.24B Net Debt Cash: $8.22B • Debt: $14.46B | Audit Note → | |
ORCLHOLD Oracle Corporation Technology • Software Infrastructure | 🛡️ Pristine Quality | 0 Clean ✓ Cash compounder: OCF exceeds GAAP profit (1.87x) | 1.87x OCF: $31.98B / NI: $17.09B | -5.69%Cash Superior | AR NormalInventory OK | -$119.11B Net Debt Cash: $37.08B • Debt: $156.19B | Audit Note → | |
PFEBUY Pfizer Inc. Healthcare • Pharmaceuticals | 🛡️ Pristine Quality | 0 Clean ✓ Cash compounder: OCF exceeds GAAP profit (1.51x) | 1.51x OCF: $11.70B / NI: $7.77B | -1.89%Cash Superior | AR NormalInventory OK | -$49.68B Net Debt Cash: $14.28B • Debt: $63.96B | Audit Note → | |
PGHOLD The Procter & Gamble Company Consumer Defensive • Household Products | 🛡️ Pristine Quality | 0 Clean ✓ Cash compounder: OCF exceeds GAAP profit (1.22x) | 1.22x OCF: $19.56B / NI: $16.05B | -2.77%Cash Superior | AR NormalInventory OK | -$19.66B Net Debt Cash: $15.37B • Debt: $35.03B | Audit Note → | |
RTXHOLD RTX Corporation Industrials • Aerospace & Defense | 🛡️ Pristine Quality | 0 Clean ✓ Cash compounder: OCF exceeds GAAP profit (1.57x) | 1.57x OCF: $10.57B / NI: $6.73B | -2.24%Cash Superior | AR NormalInventory OK | -$30.33B Net Debt Cash: $9.17B • Debt: $39.51B | Audit Note → | |
SCHWBUY The Charles Schwab Corporation Financial Services • Capital Markets & Brokerage | 🛡️ Pristine Quality | 0 Clean ✓ Clean GAAP conversion; zero accrual or working-capital flags | 1.05x OCF: $9.31B / NI: $8.85B | -0.09%Cash Superior | AR NormalInventory OK | +$37.55B Net Cash Cash: $68.50B • Debt: $30.95B | Audit Note → | |
SLBHOLD SLB N.V. Energy • Oilfield Services | 🛡️ Pristine Quality | 0 Clean ✓ Cash compounder: OCF exceeds GAAP profit (1.92x) | 1.92x OCF: $6.49B / NI: $3.37B | -5.68%Cash Superior | AR NormalInventory OK | -$8.04B Net Debt Cash: $3.60B • Debt: $11.64B | Audit Note → | |
SNOWHOLD Snowflake Inc. Technology • Cloud Data Platforms | 🛡️ Pristine Quality | 0 Clean ✓ Clean GAAP conversion; zero accrual or working-capital flags | -0.92x OCF: $1.22B / NI: -$1.33B | -27.96%Cash Superior | AR NormalInventory OK | -$396.4M Net Debt Cash: $2.34B • Debt: $2.74B | Audit Note → | |
TSLASELL Tesla, Inc. Consumer Discretionary • Auto Manufacturers | 🛡️ Pristine Quality | 0 Clean ✓ Cash compounder: OCF exceeds GAAP profit (3.89x) | 3.89x OCF: $14.75B / NI: $3.79B | -7.95%Cash Superior | AR NormalInventory OK | +$30.73B Net Cash Cash: $45.45B • Debt: $14.72B | Audit Note → | |
TSMBUY Taiwan Semiconductor Manufacturing Technology • Semiconductors | 🛡️ Pristine Quality | 0 Clean ✓ Cash compounder: OCF exceeds GAAP profit (1.34x) | 1.34x OCF: $2.27T / NI: $1.70T | -7.28%Cash Superior | AR NormalInventory OK | +$2.95T Net Cash Cash: $4.02T • Debt: $1.06T | Audit Note → | |
TXNBUY Texas Instruments Incorporated Technology • Semiconductors | 🛡️ Pristine Quality | 0 Clean ✓ Cash compounder: OCF exceeds GAAP profit (1.43x) | 1.43x OCF: $7.15B / NI: $5.00B | -6.22%Cash Superior | AR NormalInventory OK | -$5.91B Net Debt Cash: $8.14B • Debt: $14.05B | Audit Note → | |
VHOLD Visa Inc. Financial Services • Credit Services | 🛡️ Pristine Quality | 0 Clean ✓ Cash compounder: OCF exceeds GAAP profit (1.15x) | 1.15x OCF: $23.06B / NI: $20.06B | -3.01%Cash Superior | AR NormalInventory OK | -$11.09B Net Debt Cash: $14.08B • Debt: $25.17B | Audit Note → |
🔬 Marcus Wolfe Forensic Accounting Desk: Reading the Anomaly Radar
GAAP earnings are management’s legal estimate of business performance. Operating cash flows represent verified dollars entering the corporate treasury. The Forensic Radar monitors four systemic accounting distortions to flag low earnings persistence before market corrections:
1. The Sloan Accrual Index
Calculated as (Net Income - Operating Cash Flow) / Total Assets. Accruals exceeding +10% indicate heavy reliance on non-cash accounting adjustments to manufacture paper profits with low persistence.
2. Cash-Flow Divergence
When reported GAAP net income trends upward while real operating cash flow turns negative, earnings quality disconnects. Common precursor to unexpected liquidity squeezes or debt covenant breaches.
3. Channel-Stuffing (DSO)
When Accounts Receivable grow faster than revenue by more than 15%, the enterprise is either stuffing distribution channels or extending aggressive credit terms to artificially pull forward revenues.
4. Inventory Bloat (DSI)
When finished inventory outpaces Cost of Goods Sold (COGS) growth by more than 15%, unsold stock is piling up on the balance sheet, signaling imminent gross margin compression or write-downs.