88d DSOReceivables vs revenue. Days sales outstanding moved from 70 to 88 days FY2024→FY2025 (receivables +5% vs revenue -17%). Receivables are outrunning sales — a flag for aggressive revenue recognition or slipping collections.
57dInventory days. Days inventory outstanding moved from 40 to 57 FY2024→FY2025 (against cost of goods sold; inventory +13% vs -19% in cost of sales). Inventory is outrunning what's being sold — a flag for softening demand or obsolescence risk ahead.
4%Return on invested capital. Return on invested capital is 4% and slipping from 36% — well below its ~9% cost of capital, so reinvested dollars may be destroying value, not building it.
+4.4%/yrShare-count dilution. Diluted share count changed +13% over the last 3 years to FY2025 (+4.4%/yr). A reversal: the count shrank earlier (net -5.8%/yr since FY2017) but the company has SWUNG to issuing stock — recent holders are now being diluted, not rewarded. That's ~4.4% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~13%.
+14.1%Accruals ratio. Net operating assets grew +14.1% relative to their average in FY2025 — the accrual component of earnings. Accruals are building faster than is comfortable — part of profit sits in receivables, inventory or capitalized costs rather than cash. The cash-flow cross-check agrees: reported earnings ran in line with operating cash by +1% of net operating assets.
-68%Dividend — cut. The payout was CUT ~68% in FY2013 (from FY2012). It still returns some cash, but it is NOT the dependable, rising dividend an unbroken streak implies — weigh the cut when judging reliability.