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Barrett Business Services earnings quality score
How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show
Score60 / 100 · grade C · rank 709 of 1027
Barrett Business Services (BBSI) scores 60 of 100 for earnings quality, grade C: rank 709 of 1027 companies and 170 of 287 in industrials. It loses the most points on accruals of -1.5% of assets, higher than 76% of companies, adjusted earnings 31% below GAAP, profit far steadier than cash flow (smoothness 0.16). It earns full or near-full marks for Beneish M-score -2.54: clean (below −2.22), Dechow F-score 0.51 (normal).
What earned and lost points
| Component | What the filings show | Points | Of |
|---|---|---|---|
| Accruals | accruals of -1.5% of assets, higher than 76% of companies | 5 | 20 |
| Beneish M-score | Beneish M-score -2.54: clean (below −2.22) | 15 | 15 |
| Dechow F-score | Dechow F-score 0.51 (normal) | 15 | 15 |
| Montier C-score | Montier C-score 1 of 5 checks failed | 12 | 15 |
| Discretionary accruals | discretionary accruals of +1.9% of assets (modified Jones), smaller than most | 7 | 10 |
| Piotroski F-score | Piotroski F-score 6 of 9 | 7 | 10 |
| Non-GAAP gap | adjusted earnings 31% below GAAP | 0 | 10 |
| Earnings smoothness | profit far steadier than cash flow (smoothness 0.16) | 0 | 5 |
How the score is built
Eight published measures, each scored against the whole universe or on its own scale and weighted: accruals 20, discretionary accruals 10, Beneish M 15, Dechow F 15, Montier C 15, Piotroski F 10, the non-GAAP gap 10, smoothness 5. A measure that cannot be computed (Beneish for a bank, say) drops out and the rest is rescaled, so every company is scored on what applies to it.
Every company ranked → The full quality workbench, live → Barrett Business Services: cash flow →
Computed from the companies’ own XBRL filings (latest fiscal year) by published formulas; a statistical screen, not an audit or an accusation. A low score means the reported profit shows more of the markers of managed or low-quality earnings than its peers. Not investment advice.