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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

ComponentWhat the filings showPointsOf
Accrualsaccruals of -1.5% of assets, higher than 76% of companies520
Beneish M-scoreBeneish M-score -2.54: clean (below −2.22)1515
Dechow F-scoreDechow F-score 0.51 (normal)1515
Montier C-scoreMontier C-score 1 of 5 checks failed1215
Discretionary accrualsdiscretionary accruals of +1.9% of assets (modified Jones), smaller than most710
Piotroski F-scorePiotroski F-score 6 of 9710
Non-GAAP gapadjusted earnings 31% below GAAP010
Earnings smoothnessprofit far steadier than cash flow (smoothness 0.16)05
BBSI: share of the available points, by componentBBSI: share of the available points, by componentAccruals24%Discretionary accruals68%Beneish M-score100%Dechow F-score100%Montier C-score80%Piotroski F-score67%

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.