The macroeconomic trends from the given data show notable shifts across several key indicators for 2024. The Consumer Price Index for All Urban Consumers: All Items in U.S. City Average (CPI) increased from 308.42 in January 2024 to 315.61 in December 2024, a 2.3 % rise signalling persistent inflation throughout the year. Treasury interest rates showed a broad decline, with the 1-month rate dropping from 5.55% in January 2024 to 4.45% in January 2025. Similarly, long-term rates like the 10-year yield increased from 3.95% to 4.65%, reflecting a potential shift in monetary policy aimed at managing inflation and stabilizing the economy. The money supply data indicates a moderate increase in both M1 money supply and M2 money supply over 2024. M1 rose from 17,923.5 billion in February to 18,365.7 billion in November, reflecting a 2.47% growth, likely driven by increased demand deposits and currency in circulation. Similarly, M2 grew from 20,762.0 billion to 21,447.6 billion, a 3.30% rise, signalling broader liquidity expansion in the economy. These trends suggest a steady monetary expansion, potentially supporting economic activity while contributing to inflationary pressures. Commodity prices rose moderately during the year, with the Commodities Index increasing from 99.23 in January 2024 to 103.5 by January 2025. Gold prices, often viewed as a hedge against inflation and economic uncertainty, surged from $2064.40 in January 2024 to $2777.30 in January 2025.

Meanwhile, the S&P 500 index exhibited strong growth, climbing from 4742.83 in January 2024 to 6101.24 in January 2025, an increase of 28,64 % indicating robust investor confidence and returns despite inflationary and monetary pressures. These trends suggest an economic landscape characterized by inflationary pressures, falling interest rates, rising commodity prices, and strong equity market performance..

And the U.S. gross domestic product (GDP) is still growing.

Identified companies 2024 Q4.

AGILENT TECHNOLOGIES, INC.

Agilent Technologies, Inc. is a global leader in life sciences, diagnostics, and applied chemical markets. The company provides instruments, software, services, and consumables for laboratories worldwide, helping researchers and scientists accelerate their work in various fields, including pharmaceuticals, biotechnology, and environmental testing. As of the latest data, Agilent has a trailing PE ratio of 34, suggesting slightly higher future expectations compared to its current earnings. No dividend yield data is reported. It has a record of repetitive revenue and earnings growth. Insider sell activity is present. Note: Insider sales involve transactions where company executives, directors, or significant shareholders sell their shares, which can raise concerns among investors but do not always signal negative news. Executives may sell for personal reasons like buying a house or diversifying their portfolios, and some have pre-arranged trading plans (10b5-1 plans) that allow them to sell at set times to avoid accusations of insider trading.

ACCENTURE PLC

The current status of stock position is:

Accenture is a leading global professional services company that provides consulting, technology, and outsourcing solutions. With a focus on digital, cloud, and security technologies, Accenture helps businesses transform and innovate in a rapidly evolving digital world. The company offers a small dividend yield of 1.7 %, with a trailing PE of 30 and a price-to-book ratio of 8 and a net income of $7.26 billion, achieving a return on equity (ROE) of 26.67% and return on assets (ROA) of 11.63%. Insider buys (Securities were Acquired by insiders; FORM 4).

ESCO Technologies Inc.

The current status of stock position is:

ESCO Technologies Inc.: Operating in engineered products and solutions for utilities and industries, ESCO Technologies has a PE of 33.72, reflecting its premium valuation. The company offers a dividend yield of 0.23 % and has a trailing PE of 33.52. With a price-to-book ratio of 2.7 and generates a modest net income of $102 million, leading to an ROE of 8.66% and ROA of 4.96%. In August 2024, the Board renewed the common stock repurchase program for an additional three years expiring September 30, 2027 on terms similar to those of the 2021-2024 program, with a maximum total repurchase amount of $200 million or the maximum amount permitted under our bank credit agreements, if less.
In 2024, ESCO Technologies Inc. achieved significant financial growth, with sales reaching $1,026.8 million, a 7.4% increase from $956.0 million in 2023, and net earnings improving to $101.9 million from $92.5 million. Diluted EPS – GAAP rose by 10.1% to $3.94, while Diluted EPS – As Adjusted increased to $4.18, reflecting adjustments for restructuring, acquisition, and financing costs. The company maintained strong financial health with $66.0 million in cash on hand and a net debt position of $56.0 million. Notable operational highlights include a book-to-bill ratio of 1.10x, backlog growth of 13.8% to $879.0 million, and increased sales in the A&D and USG segments, partially offset by a decline in the Test segment. Additionally, the company declared $8.2 million in dividend payments, reinforcing its commitment to shareholder returns. Overall, 2024 marked a year of robust performance and strategic growth for ESCO Technologies.
Quality of revenue
The company’s financial reports fully adhere to GAAP, providing decision-useful, sustainable insights that generate adequate returns, exceeding the cost of capital. There have been no new changes to accounting policies, ensuring consistency and reliability in financial reporting. Additionally, the company consistently meets deadlines for filing required financial reports. Revenue is predictable and the business is profitable. The revenue base is well-diversified and the company is experiencing strong growth in both revenue and net income. There are no clear warning signs in the financial reports. Earnings are not reliant on significant accruals (but accounts receivable and inventories have increased year on year), and the company avoids narrowly meeting or beating earnings benchmarks. Revenue is recognized appropriately, without premature recognition or manipulation of expenses. Furthermore, the company’s financial reports carry an unqualified audit opinion, demonstrating their accuracy and transparency. However, a critical audit matter was identified relating to revenue recognition for long-term fixed-price contracts in the Aerospace & Defense segment, particularly the estimation of total contract costs at completion. This process involves significant judgment and is susceptible to management bias due to the complexity and high uncertainty in estimating labor, material, and overhead costs. The auditors performed detailed procedures, including testing internal controls, reviewing contract terms, and analyzing actual costs and progress, to ensure reasonable accuracy and detect potential bias. Overall, the report reflects a strong level of financial transparency and robust audit procedures, enhancing stakeholders’ confidence in the Company’s financial reporting. Goodwill is properly assessed for impairment, and there are no concerns with a high allowance for doubtful accounts or loan loss reserves. The company’s reports are conservative, with minimal related-party transactions and no substantial off-balance-sheet debt. There are no alarming discrepancies between net income and operating cash flow, and earnings come primarily from recurring activities. The company consistently beats benchmarks, ensuring high-quality, persistent earnings without restatements or enforcement actions. Some insider activity on buy and sell side.
Quality of revenue can be self checked with this questionnaire:
Quality of Revenue
Conclusions were based on an annual report:
FORM 10-K

FactSet Research Systems Inc.

FactSet Research Systems Inc., together with its subsidiaries, operates as a financial digital platform and enterprise solutions provider for the investment community worldwide. a trailing PE of 33 and a price-to-book ratio of 8.9. The company’s diluted EPS stands at $13.91, and it earns a net income of $537 million, delivering a ROE of 30% and an ROA of 11%. On September 17, 2024, the Board of Directors authorized up to $300 million for share repurchases, which will be available during fiscal 2025.
In fiscal 2024, revenues reached $2,203.1 million, a 5.6% increase from the prior year, driven by 5.7% organic growth across all segments, primarily in the Americas, due to higher demand and price increases for workstations, data solutions, and middle office solutions. Organic ASV plus Professional Services totaled $2,272.8 million, up 4.8%, with similar regional trends. Operating margin rose to 31.8% from 30.2%, supported by revenue growth, lower employee compensation costs, and reduced asset impairments, partially offset by Massachusetts sales tax dispute charges and increased amortization of intangible assets. Net income grew 14.7% to $537.1 million, with diluted EPS rising 15.5% to $13.91, aided by higher operating income and fewer diluted shares outstanding. The company returned $385.9 million to stockholders via share repurchases and dividends. As of August 31, 2024, the client and user counts were 8,217 and 216,381, respectively, while the employee headcount grew 1.3% to 12,398, with Asia Pacific growth offsetting declines in the Americas and EMEA.
Quality of revenue
The company’s financial reports fully adhere to GAAP, providing decision-useful, sustainable insights that generate adequate returns, exceeding the cost of capital. There have been no new changes to accounting policies, ensuring consistency and reliability in financial reporting. During fiscal 2024, the company did not adopt any new accounting standards or updates issued by the Financial Accounting Standards Board (FASB) that had a material impact on its Consolidated Financial Statements. The company is assessing the potential impact of the SEC’s rule requiring climate-related disclosures, which has been stayed pending judicial review. Upcoming accounting pronouncements, including FASB’s ASU 2024-02 on codification improvements (effective fiscal 2026), ASU 2023-09 on income tax disclosures (effective fiscal 2026), and ASU 2023-07 on segment reporting improvements (effective fiscal 2025 for annual and fiscal 2026 for interim periods), are not expected to materially impact the company’s financial statements, though the company is evaluating disclosure requirements. Similarly, ASU 2023-06, which aligns disclosures with the SEC’s simplification initiative, will take effect when corresponding SEC requirements are removed, no later than June 30, 2027, and is not expected to have a material impact. Overall, no new accounting pronouncements issued or effective during fiscal 2024 have had or are expected to have a significant effect on the company’s Consolidated Financial Statements. Additionally, the company consistently meets deadlines for filing required financial reports. Revenue is predictable and the business is profitable. The revenue base is well-diversified and the company is experiencing strong growth in both revenue and net income. There are some warning signs in the financial reports. An audit of FactSet Research Systems Inc.’s internal control over financial reporting as of August 31, 2024, based on the COSO 2013 framework, identified a material weakness that rendered the company’s internal controls ineffective. The material weakness relates to deficiencies in the design and operation of IT general controls for financial applications supporting revenue, accounts receivable, and deferred revenue processes, which also impacted automated and IT-dependent manual controls relying on these applications. This deficiency creates a reasonable possibility of undetected material misstatements in the financial statements. While this material weakness influenced the audit approach for the 2024 and 2023 consolidated financial statements, it did not affect the unqualified opinion issued on those financial statements dated October 29, 2024. Earnings are not reliant on significant accruals (but accounts receivable and inventories have increased year on year), and the company avoids narrowly meeting or beating earnings benchmarks. Revenue is recognized appropriately, without premature recognition or manipulation of expenses. Goodwill is not amortized as it is estimated to have an indefinite life. The company tests goodwill annually for impairment during the fourth quarter of each fiscal year or more frequently if events and circumstances occur indicating that it is more likely than not that the fair value of any one of our reporting units is less than its respective carrying value. The off-balance-sheet debt could have not been evaluated at this time. The company’s earnings come primarily from recurring activities. The company sometimes beats benchmarks and has persistent earnings without restatements or enforcement actions. Some insider activity more on sell side.
Quality of revenue can be self checked with this questionnaire:
Quality of Revenue
Conclusions were based on an annual report:
FORM 10-K

F5, Inc.

The current status of stock position is:

Specializing in multi-cloud application services and security, F5 has a trailing PE of 30 and a price-to-book ratio of 5. The company’s diluted EPS stands at $9.55, and it earns a net income of $567 million, delivering a ROE of 19.12% and an ROA of 7.77%.
The company monitors several key performance indicators to evaluate its financial and operational performance, including revenues, cost of revenues, operating expenses, liquidity, cash flows, and balance sheet metrics. Revenue is generated from global services and product sales, with significant contributions from application security and delivery solutions, such as BIG-IP, F5 NGINX, and F5 Distributed Cloud Services. Fiscal 2023 and early fiscal 2024 were impacted by customer budget constraints due to macroeconomic uncertainties, leading to softer demand, though demand stabilized over fiscal 2024. Cost management focuses on hardware, software licensing, SaaS infrastructure, and overhead expenses to maintain gross margins, while operating expenses are driven primarily by personnel, marketing, and product development costs. The company maintains strong liquidity, with $792.4 million in operating cash flows in fiscal 2024, offset by $500.6 million used for stock repurchases. A revolving credit facility provides additional flexibility with $350.0 million in available borrowing capacity. Deferred revenue growth, driven by subscription-based contracts, and a days sales outstanding of 47 indicate continued financial stability and operational efficiency. On July 25, 2022, the company announced that its Board of Directors authorized an additional $1.0 billion for the common stock share repurchase program. This authorization is incremental to the existing $5.4 billion program, which was initially approved in October 2010 and subsequently expanded in later fiscal years. Acquisitions under the share repurchase programs will be conducted from time to time through private transactions, accelerated share repurchase programs, or open market purchases, in compliance with securities laws and other legal requirements. The programs may be terminated at any time. During fiscal year 2024, the company repurchased and retired 2,823,608 shares of common stock at an average price of $177.08 per share. As of September 30, 2024, $422.4 million remained authorized for additional share purchases.
Quality of revenue
The company’s financial reports fully adhere to GAAP, providing decision-useful, sustainable insights that generate adequate returns, exceeding the cost of capital. There have been no new changes to accounting policies, ensuring consistency and reliability in financial reporting. Additionally, the company consistently meets deadlines for filing required financial reports. Revenue is predictable and the business is profitable. The revenue base is well-diversified and the company is experiencing growth in both revenue and net income. There are no clear warning signs in the financial reports. Earnings are not reliant on significant accruals (accounts receivable, have decreased and inventories have doubled year on year), and the company avoids narrowly meeting or beating earnings benchmarks. Revenue is recognized appropriately, without premature recognition or manipulation of expenses. Furthermore, the company’s financial reports carry an unqualified audit opinion, demonstrating their accuracy and transparency. Overall, the report reflects a strong level of financial transparency and robust audit procedures, enhancing stakeholders’ confidence in the Company’s financial reporting. The Company tests goodwill for impairment on an annual basis and between annual tests when impairment indicators are identified, and goodwill is written down when impaired. The company’s reports are conservative, with minimal related-party transactions and no substantial off-balance-sheet debt. The company does not consistently beat benchmarks. Some insider activity on buy and sell side. Operating expenses (as a percentage of net revenue) are 56.8 %. Off-balance-sheet arrangements are not well described.
Quality of revenue can be self checked with this questionnaire:
Quality of Revenue
Conclusions were based on an annual report:
FORM 10-K

Jacobs Solutions Inc.

The current status of stock position is:

Jacobs Solutions Inc.: provides consulting, technical, engineering, scientific, and project delivery services for the government and private sectors in the United States, Europe, Canada, India, Asia, Australia, New Zealand, the Middle East, and Africa. Jacobs Solutions has a a trailing PE of 29, and a price-to-book ratio of 4. The company’s diluted EPS is $6.3, and its net income is $806 million, leading to a ROE of 9.33% and ROA of 4.98%.
Net earnings attributable to the company from continuing operations for fiscal 2024 were $612.8 million ($4.79 per diluted share), reflecting a significant increase of $233.7 million, or 61.6%, compared to $379.1 million ($3.05 per diluted share) in fiscal 2023. This growth was driven by a $16.0 million increase in operating profit, supported by favorable underlying performance, particularly in the Infrastructure & Advanced Facilities (I&AF) segment, as outlined in the Segment Financial Information section. Additionally, fiscal 2024 results benefited from $186.9 million in pre-tax mark-to-market gains from the company’s investment in Amentum stock, associated with the Separation Transaction. These gains were achieved despite higher pre-tax restructuring and transaction-related charges of $144.2 million, mainly due to professional services and employee separation costs incurred for the Separation Transaction. This compares to fiscal 2023 charges of $142.5 million, which primarily related to restructuring efforts such as the real estate transformation rescaling initiatives, PA Consulting restructuring charges, and expenses tied to the Separation Transaction. (See Note 17 – Restructuring and Other Charges for details.) Net interest expense improved by $8.5 million year-over-year, driven by higher cash levels and lower outstanding debt compared to fiscal 2023. Miscellaneous net income increased by $231.9 million, largely due to $186.9 million in pre-tax mark-to-market gains on Amentum stock and a $35.2 million realized gain from interest rate swaps settled in the fourth quarter of fiscal 2024 (see Note 18 – Commitments and Contingencies and Derivative Financial Instruments). Income tax expenses were $30.2 million higher in fiscal 2024, reflecting $55.8 million in tax expenses from increased pre-tax book income. However, this increase was partially offset by a $61.6 million discrete income tax benefit from reclassifying an Australian subsidiary for U.S. tax purposes, resulting in the derecognition of a deferred tax liability. Additionally, fiscal 2023 included a $39.4 million net tax benefit from the resolution of uncertain tax positions. Year-over-year impacts from redeemable noncontrolling interests decreased by $6.6 million, mainly due to lower after-tax earnings from the PA Consulting investment. Net earnings attributable to discontinued operations were $193.3 million ($1.54 per diluted share) in fiscal 2024, a decline of $93.4 million, or 32.6%, from $286.7 million ($2.25 per diluted share) in fiscal 2023. This decrease was primarily due to higher charges related to the Separation Transaction during the current fiscal year. The company’s backlog at September 27, 2024, reached $21.8 billion, an increase of $4.0 billion from $17.8 billion in the prior year. This growth was driven by strong new business awards, particularly within the Americas. New prospects and sales remain robust, and the company maintains a positive outlook across various industry sectors and client operations. The Board of Directors of Jacobs Solutions Inc. authorized a share repurchase program (“2020 Repurchase Authorization”) on January 16, 2020, allowing for the repurchase of up to $1.0 billion of the Company’s common stock. During the fourth quarter of fiscal 2021, the Company initiated an accelerated share repurchase program, advancing $250 million in a privately negotiated transaction, with final settlement completed in the first quarter of fiscal 2022, retiring 342,054 shares. The 2020 Repurchase Authorization expired on January 15, 2023. Subsequently, on January 25, 2023, the Board authorized a new share repurchase program (“2023 Repurchase Authorization”) for an additional $1.0 billion, set to expire on January 25, 2026. As of September 27, 2024, $472.2 million remained under this authorization. Under the 2020 Repurchase Authorization, the Company repurchased and retired 1,237,688 shares at an average price of $113.56 per share, including commissions and excise taxes. Under the 2023 Repurchase Authorization, 2,887,173 shares were repurchased and retired during fiscal 2024 at an average price of $139.47 per share, also including commissions and excise taxes. The share repurchase programs do not mandate the repurchase of any specific number of shares. The company demonstrates a commitment to high standards of financial reporting, fully complying with Generally Accepted Accounting Principles (GAAP). Its financial reports are decision-useful, sustainable, and consistently deliver returns that exceed the cost of capital. The company maintains stability by avoiding changes to accounting policies and ensuring all required financial reports are submitted on time. Revenue is of high quality and the company is profitable. Furthermore, the company exhibits significant growth potential, with both revenue and net income consistently increasing. The company’s financial practices are transparent and reliable. Earnings are largely free from accrual components, and the company avoids premature revenue recognition, expense deferrals, or reporting fraudulent revenues. Expenses are correctly classified, and their timing and amounts are accurately reported. Financial reports consistently receive unqualified audit opinions, reflecting the high level of integrity maintained. In addition, the company follows responsible accounting practices, regularly assessing goodwill for impairment and maintaining conservative allowances for doubtful accounts or loan loss reserves. Because the company has grown in part through acquisitions, goodwill and intangible assets constitute a significant portion of its total assets. As of September 27, 2024, the company reported $4.79 billion in goodwill, representing 40.7% of total assets valued at $11.8 billion. Under U.S. GAAP, the company is required to test goodwill recorded on its Consolidated Balance Sheets for potential impairment on an annual basis or whenever events or changes in circumstances suggest that impairments may exist, using a fair value approach. Additionally, the company evaluates the recoverability of the unamortized balance of its intangible assets when indications of impairment arise, based on expected future profitability, undiscounted cash flows, and their contribution to overall operations. The company has elected to conduct its annual goodwill impairment reviews at the start of the fiscal fourth quarter. Financial reports are transparent, avoiding excessive related-party transactions or significant off-balance-sheet debt. There are no concerning discrepancies between net income and operating cash flows, and earnings are derived from recurring, persistent sources rather than one-off activities.
Insider sales activity.
Quality of revenue can be self checked with this questionnaire:
Quality of Revenue
Conclusions were based on an annual report:
FORM 10-K

J&J Snack Foods Corp:

J&J Snack Foods Corp. produces and distributes niche snack foods and beverages, J&J Snack Foods offers a modest dividend yield of 2.3 %, a trailing PE of 30, and a price-to-book ratio of 2.8. With a diluted EPS of $4.45, its net income is $86 million, resulting in a ROE of 9.26% and ROA of 5.56%. There is no clear stock repurchase program. With the exception of shares withheld to cover taxes associated with the vesting of certain restricted stock units held by officers and employees, the company did not purchase any shares of common stock in our fiscal years ended September 28, 2024, September 30, 2023, and September 24, 2022. The company demonstrates a commitment to high standards of financial reporting, fully complying with Generally Accepted Accounting Principles (GAAP). Its financial reports are decision-useful, sustainable, and consistently deliver returns that exceed the cost of capital. The company maintains stability by avoiding changes to accounting policies and ensuring all required financial reports are submitted on time. Revenue quality is of good quality and the company is profitable. Revenue is diversified and the company exhibits growth potential, with both revenue and net income consistently increasing. The company’s financial practices are transparent and reliable. Earnings are largely free from accrual components, and the company avoids premature revenue recognition, expense deferrals, or reporting fraudulent revenues. Expenses are correctly classified, and their timing and amounts are accurately reported. Financial reports have unqualified audit opinions, reflecting the high level of integrity maintained. The Company has off-balance sheet arrangements for purchase commitments as of September 28, 2024. In addition, the company follows responsible accounting practices, regularly assessing goodwill for impairment and maintaining conservative allowances for doubtful accounts or loan loss reserves. Financial reports are transparent, avoiding excessive related-party transactions or significant off-balance-sheet debt. There are no concerning discrepancies between net income and operating cash flows, and earnings are derived from recurring, persistent sources rather than one-off activities. The company meets benchmarks.
Quality of revenue can be self checked with this questionnaire:
Quality of Revenue
Conclusions were based on an annual report:
FORM 10-K
Insider buy and sales activity.

Moog Inc.

The current status of stock position is:

Moog Inc. designs and manufactures precision control components and systems, Moog has a trailing PE of around 30, and its price-to-book ratio is close to 3.4. A diluted EPS stands at $6.4, and net income is $207 million, yielding an ROE of 11.85% and ROA of 6.13%. Here is your text rewritten in the third person: — Net sales increased across all segments in 2024 compared to 2023, driven by production ramps in Commercial Aircraft and growth in the defense market within Military Aircraft, Space, and Defense. Gross margin improved in 2024 compared to 2023, primarily due to enhanced performance in space vehicle development programs, a $14 million benefit from the Employee Retention Credit under the CARES Act, and the impact of pricing and simplification initiatives implemented across all segments. Research and development expenses rose in 2024 compared to 2023, reflecting increased activities supporting new growth programs in Space and Defense and Industrial. This increase was partially offset by a reduction in spending within Military Aircraft. Selling, general, and administrative expenses as a percentage of sales declined in 2024 compared to 2023. The twelve-month backlog as of September 28, 2024, increased compared to the twelve-month backlog as of September 30, 2023. Within Commercial Aircraft, higher spares orders were recorded in aftermarket programs. In Space and Defense, orders rose across satellite and launch vehicle programs, as well as defense component programs. These increases were partially offset by the timing of orders in various Military Aircraft programs. The Board of Directors has authorized a share repurchase program that permits the purchase of up to 3 million common shares of Class A or Class B common stock in open market or privately negotiated transactions at the discretion of management. The company follows compliance with Generally Accepted Accounting Principles (GAAP). Its financial reports are decision-useful, sustainable, and consistently deliver returns that exceed the cost of capital. The company maintains stability by avoiding changes to accounting policies and ensuring all required financial reports are submitted on time. The company tests goodwill for impairment. Revenue quality is a standout feature of the company, with highly predictable streams supported by a majority of clients returning year after year. Profitability remains robust, and revenue is diverse. Furthermore, the company exhibits significant growth potential, with both revenue and net income consistently increasing. However, a significant amount of current assets is tied in net receivables, net, unbilled receivables, and net inventories. The company’s financial practices are transparent and reliable. Earnings are largely free from accrual components, and the company avoids premature revenue recognition, expense deferrals, or reporting fraudulent revenues. Expenses are correctly classified, and their timing and amounts are accurately reported. Financial reports consistently receive unqualified audit opinions, reflecting the high level of integrity maintained. In addition, the company follows responsible accounting practices, regularly assessing goodwill for impairment and maintaining conservative allowances for doubtful accounts or loan loss reserves. Financial reports are transparent. The presence off-balance-sheet debt is not well described. There are no concerning discrepancies between net income and operating cash flows, and earnings are derived from recurring, persistent sources rather than one-off activities. The company consistently meets or exceeds benchmarks
Quality of revenue can be self checked with this questionnaire:
Quality of Revenue
Conclusions were based on an annual report:
FORM 10-K
Insider sales activity.

Synopsys Inc.:

The current status of stock position is:

Synopsys Inc.: A leader in electronic design automation and software, Synopsys has a trailing PE of 59, and with a price-to-book ratio of 9.4 and a diluted EPS of $14.51, it earns $1.4 billion in net income, achieving a ROE of 21.82% and ROA of 8.62%. The company demonstrates a strong commitment to high standards of financial reporting, fully complying with Generally Accepted Accounting Principles (GAAP). Its financial reports are decision-useful, sustainable, and consistently deliver returns that exceed the cost of capital. The company maintains stability by avoiding changes to accounting policies and ensuring all required financial reports are submitted on time. Here is a third-person summary of the provided text: — In fiscal 2024, revenues reached $6.1 billion, reflecting a 15% increase of $809.4 million, primarily driven by growth across all products and geographies. Total cost of revenue and operating expenses rose to $4.8 billion, an 18% increase of $726.9 million, largely due to a $325.8 million rise in employee-related costs from headcount expansion through organic growth and acquisitions. Operating income increased by 6% to $1.4 billion, while net income from discontinued operations surged to $821.7 million, primarily due to the gain from the Software Integrity Divestiture. In comparison, fiscal 2023 revenues totaled $5.3 billion, marking a 15% increase of $702.3 million, also driven by broad-based growth. Total cost of revenue and operating expenses reached $4.0 billion, up 17% or $577.8 million, with employee-related costs rising by $246.7 million. Operating income for fiscal 2023 was $1.3 billion, reflecting an 11% increase. The company continues to deliver silicon-to-systems design solutions, partnering with semiconductor and systems companies to enhance engineering and R&D capabilities. With a strong track record of revenue growth since 2005, despite economic uncertainties, the company attributes its success to solid execution, advanced technologies, and long-term customer relationships. Revenue recognition policies ensure that sales efforts in prior periods contribute to current financial results. The growth strategy focuses on maintaining leadership in Design Automation products, expanding Design IP offerings, and increasing the total addressable market. Revenue fluctuations are expected based on the mix of time-based and upfront product sales. Strong technologies, customer relationships, a disciplined expense approach, and an acquisition strategy are expected to support continued execution. On January 15, 2024, an agreement was reached to acquire Ansys, a provider of engineering simulation and analysis software, in a cash-and-stock transaction valued at approximately $35.0 billion. The merger terms include an exchange ratio of 0.3450 shares of Synopsys common stock per Ansys share and $197.00 in cash. Upon completion, Ansys shareholders will own approximately 16.5% of the combined company, with Synopsys shareholders holding the remaining 83.5%. As part of the merger agreement, two Ansys board members will join the Synopsys Board of Directors, with Ansys CEO Dr. Ajei Gopal already designated. The acquisition, approved by Ansys shareholders on May 22, 2024, is expected to close in the first half of 2025, pending regulatory approvals and customary closing conditions. To facilitate the merger, Synopsys agreed to divest its Optical Solutions Group to Keysight Technologies, with the divestiture subject to regulatory review. Financing arrangements for the merger include a $10.6 billion senior unsecured bridge facility and a $4.3 billion term loan facility. Termination fees of $1.5 billion for Synopsys or $950.0 million for Ansys apply under specific circumstances. The company’s stock repurchase program, authorized for up to $1.5 billion, had $194.3 million remaining as of October 31, 2024. However, repurchases have been suspended due to the pending Ansys acquisition until debt levels are reduced. The company has not issued cash dividends on its common stock. Revenue quality is of good quality. Profitability remains robust and revenue sources are diverse. Furthermore, the company exhibits significant growth potential, with both revenue and net income consistently increasing. The company’s financial practices are transparent and reliable. Earnings are largely free from accrual components, and the company avoids premature revenue recognition, expense deferrals, or reporting fraudulent revenues. A critical audit matter highlighted the complexity and subjectivity involved in revenue recognition for software and IP license agreements. However, this opinion does not affect the overall audit opinion on the financial statements as a whole. In addition, the company follows responsible accounting practices, regularly assessing goodwill for impairment and maintaining conservative allowances for doubtful accounts or loan loss reserves. Financial reports are transparent, avoiding excessive related-party transactions. The off-balance-sheet debt is not explicitly described. There are no concerning discrepancies between net income and operating cash flows, and earnings are derived from recurring, persistent sources rather than one-off activities. The company meets benchmarks while maintaining a reputation free from restatements, enforcement actions, or any evidence of poor-quality earnings.
There is some insider sales activity. Quality of revenue can be self checked with this questionnaire:
Quality of Revenue
Conclusions were based on an annual report:
FORM 10-K

MICROSOFT CORP.

The current status of stock position is:

Microsoft is a global technology giant known for its software products like Windows, Office, and Azure. It also offers cloud computing, AI, and productivity services, alongside gaming through its Xbox platform, serving consumers, businesses, and governments worldwide. The company generates revenue by offering a wide range of cloud-based solutions, content, and other services to individuals and businesses; licensing and supporting a variety of software products; delivering relevant online advertising to a global audience; and designing and selling devices. The most significant expenses are related to employee compensation; supporting and investing in cloud-based services, including datacenter operations; designing, manufacturing, marketing, and selling other products and services; and income taxes. Microsoft provides a dividend yield of 0.75 % and has a trailing PE of 37. Its price-to-book ratio is 11.47, and EPS is $12.11. With a massive net income of $90.51 billion, it delivers an impressive ROE of 35.60% and ROA of 14.59%. In fiscal year 2024, Microsoft experienced significant growth compared to the previous year, with Microsoft Cloud revenue increasing by 23% to $137.4 billion. The company’s Office Commercial products and cloud services revenue grew by 14%, driven by a 16% rise in Office 365 Commercial revenue, while Office Consumer products and cloud services revenue increased by 4%, with Microsoft 365 Consumer subscribers reaching 82.5 million. LinkedIn revenue saw a 9% increase, and Dynamics products and cloud services revenue rose by 19%, fueled by a 24% growth in Dynamics 365. Server products and cloud services revenue grew by 22%, largely due to a 30% increase in Azure and other cloud services. Windows revenue increased by 8%, with Windows OEM revenue rising by 7% and Windows Commercial products and cloud services revenue growing by 11%. However, devices revenue declined by 15%. Xbox content and services revenue surged by 50%, reflecting a 44-point net impact from the Activision Blizzard acquisition, which transitioned Activision Blizzard content from third-party to first-party. Additionally, search and news advertising revenue, excluding traffic acquisition costs, increased by 12%. On October 13, 2023, Microsoft completed its $75.4 billion acquisition of Activision Blizzard, primarily in cash, incorporating its financial results into Microsoft’s consolidated statements from that date. Activision Blizzard is now reported as part of Microsoft’s More Personal Computing segment. The company demonstrates a strong commitment to high standards of financial reporting, fully complying with Generally Accepted Accounting Principles (GAAP). Its financial reports are decision-useful, sustainable, and consistently deliver returns that exceed the cost of capital. The company maintains stability by avoiding changes to accounting policies and ensuring all required financial reports are submitted on time. Revenue quality is a standout feature of the company, with highly predictable streams supported by a majority of clients returning year after year. Furthermore, the company exhibits growth potential, with both revenue and net income consistently increasing. The company’s financial practices are transparent and reliable. Earnings are largely free from accrual components, and the company avoids premature revenue recognition, expense deferrals, or reporting fraudulent revenues. Expenses are correctly classified, and their timing and amounts are accurately reported. Financial reports consistently receive unqualified audit opinions, reflecting the high level of integrity maintained. In addition, the company follows responsible accounting practices, regularly assessing goodwill for impairment and maintaining conservative allowances for doubtful accounts or loan loss reserves. There are no concerning discrepancies between net income and operating cash flows, and earnings are derived from recurring, persistent sources rather than one-off activities. The company consistently meets or exceeds benchmarks while maintaining a reputation free from restatements, enforcement actions, or any evidence of poor-quality earnings. During fiscal years 2024 and 2023, Microsoft repurchased 32 million and 69 million shares of its common stock for $12.0 billion and $18.4 billion, respectively, through its share repurchase program. All repurchases were funded using cash resources. As of June 30, 2024, $10.3 billion remained available under the company’s $60 billion share repurchase program.
Quality of revenue can be self checked with this questionnaire:
Quality of Revenue
Conclusions were based on an annual report:
FORM 10-K
Some insider activity on buy side.

Woodward, Inc.:

The current status of stock position is:

Woodward, Inc. is an independent designer, manufacturer, and service provider of control solutions for the aerospace and industrial markets. The company specializes in fluid energy, combustion control, electrical energy, and motion control systems, helping customers improve efficiency, reliability, and emissions performance. Serving leading original equipment manufacturers and end users, Woodward operates production and assembly facilities across the United States, Europe, and Asia, with a global presence promoting its products and services. Its strategic focus is on energy control and optimization, offering advanced technologies for power equipment in commercial and defense applications. In addition to providing integrated fuel, combustion, fluid, actuation, and electronic systems, Woodward offers aftermarket repair, maintenance, and replacement services. Founded in 1870 and incorporated in 1902, the company is headquartered in Fort Collins, Colorado. Woodward pays a small dividend yield of 0.56 % and has a trailing PE of 31. Its price-to-book ratio is 5, with a diluted EPS of $6. The company earns $372 million in net income, with an ROE of 17.54% and ROA of 6.90%. Insider activity on sell side. The company demonstrates a strong commitment to high standards of financial reporting, fully complying with Generally Accepted Accounting Principles (GAAP). Its financial reports are decision-useful, sustainable, and consistently deliver returns that exceed the cost of capital. The company maintains stability by avoiding changes to accounting policies and ensuring all required financial reports are submitted on time. The company notes that a significant portion of their revenue is concentrated among a relatively small number of customers, which makes our business more vulnerable to fluctuations in sales to these customers and changes in their financial condition. For the fiscal year ended September 30, 2024, sales to their largest 5 customers represented approximately 35% of our consolidated net sales and approximately 31% of our accounts receivable. In January 2024, the Board of Directors terminated the prior share repurchase authorization, which was nearing expiration, and concurrently authorized a new program for the repurchase of up to $600,000 of Woodward’s outstanding shares of common stock on the open market or in privately negotiated transactions over a three-year period ending in January 2027 (the “2024 Authorization”). Revenue has a predictable stream. Profitability remains robust and the company exhibits significant growth potential, with both revenue and net income consistently increasing. The company’s financial practices are transparent and reliable. Earnings have some accrual components (Accounts receivable and inventories represent a significant part of earning with little change year over year). Expenses are correctly classified, and their timing and amounts are accurately reported. Woodward’s indefinite-lived intangible asset, the Woodward L’Orange trade name, had a carrying value of $64.8 million as of September 30, 2024. The company conducted its annual impairment test on July 31, 2024, and determined that the trade name’s fair value exceeded its carrying value, indicating no impairment. The fair value was assessed using the relief from royalty method under the income approach, incorporating key assumptions such as projected revenue growth rates, royalty rates, and discount rates. Due to the significant management judgment involved in these estimates, the fair value assessment was identified as a critical audit matter, requiring extensive auditor evaluation and fair value specialists’ involvement. Woodward’s debt obligations and related restrictive covenants may limit its operational flexibility, impact business strategies, and reduce stockholder benefits in a change of control event. As of September 30, 2024, the company had total debt of $872.5 million, including $475 million in U.S. dollar-denominated unsecured notes and $178.6 million in Euro-denominated unsecured notes issued in private placements. The company must allocate a portion of its cash flow to interest and principal payments, potentially reducing funds available for business development and acquisitions. Additionally, high debt levels could make Woodward more vulnerable to economic downturns and industry challenges, restricting its ability to adapt to market changes. The company may also need additional capital to meet debt obligations upon maturity, which may not always be available on favorable terms. In addition, the company follows responsible accounting practices, regularly assessing goodwill for impairment and maintaining conservative allowances for doubtful accounts or loan loss reserves. Financial reports are transparent, avoiding excessive related-party transactions or significant off-balance-sheet debt. There are no concerning discrepancies between net income and operating cash flows, and earnings are derived from recurring, persistent sources rather than one-off activities. The company consistently meets or exceeds benchmarks.
Insider activity on sell side
Quality of revenue can be self checked with this questionnaire:
Quality of Revenue
Conclusions were based on an annual report:
FORM 10-K