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Charter Communications earnings quality score

How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show

Score66 / 100 · grade B · rank 501 of 1027

Charter Communications (CHTR) scores 66 of 100 for earnings quality, grade B: rank 501 of 1027 companies and 15 of 30 in communication. It loses the most points on Montier C-score 2 of 4 checks failed, accruals of -7.3% of assets, lower than 74% of companies (profit backed by cash), discretionary accruals of -3.3% of assets (modified Jones), larger than most. It earns full or near-full marks for adjusted earnings 4% above GAAP, Dechow F-score 1.13 (above normal).

What earned and lost points

ComponentWhat the filings showPointsOf
Accrualsaccruals of -7.3% of assets, lower than 74% of companies (profit backed by cash)2027
Dechow F-scoreDechow F-score 1.13 (above normal)1820
Montier C-scoreMontier C-score 2 of 4 checks failed1020
Discretionary accrualsdiscretionary accruals of -3.3% of assets (modified Jones), larger than most613
Non-GAAP gapadjusted earnings 4% above GAAP1113
Earnings smoothnessprofit far steadier than cash flow (smoothness 0.24)17
CHTR: share of the available points, by componentCHTR: share of the available points, by componentAccruals74%Discretionary accruals49%Dechow F-score92%Montier C-score50%Non-GAAP gap86%Earnings smoothness9%

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 → Charter Communications: 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.