57d DSOReceivables vs revenue. Days sales outstanding moved from 49 to 57 days FY2021→FY2022 (receivables +48% vs revenue +26%). Receivables are outrunning sales — a flag for aggressive revenue recognition or slipping collections.
4%Return on invested capital. Return on invested capital is 4% and slipping from 14% — well below its ~8% cost of capital, so reinvested dollars may be destroying value, not building it.
3% of revStock-based comp load. Stock-based compensation ran 3% of revenue and 363% of free cash flow in FY2025 — about $1.11 per diluted share. Heavy — a large slice of 'free cash flow' is really being paid out in stock, so the true owner cash per share is well below the headline.
+11.6%Accruals ratio. Net operating assets grew +11.6% 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 behind operating cash by -7% of net operating assets.
+0.5%/yrShare-count dilution. Diluted share count changed +1% over the last 3 years to FY2025 (+0.5%/yr). Roughly flat — buybacks are about offsetting stock comp, not shrinking the count. Per-share value isn't being meaningfully helped or hurt by the count.
432% of FCFShareholder returns. Returned $10M to shareholders (buybacks + dividends) in FY2025 — 432% of free cash flow, but 19% of operating cash flow. Returns run ahead of free cash flow because the business is also funding heavy growth capex (usually debt-financed); the payout itself is covered by operating cash — sustainable as long as that spending is genuine expansion, not upkeep.