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ConocoPhillips earnings quality score
How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show
Score82 / 100 · grade A · rank 34 of 1027
ConocoPhillips (COP) scores 82 of 100 for earnings quality, grade A: rank 34 of 1027 companies and 7 of 34 in energy. It loses the most points on Piotroski F-score 5 of 9, discretionary accruals of +2.2% of assets (modified Jones), smaller than most, accruals of -9.7% of assets, lower than 83% of companies (profit backed by cash). It earns full or near-full marks for adjusted earnings 2% below GAAP, Montier C-score 0 of 5 checks failed, profit about as variable as cash flow (smoothness 0.73).
What earned and lost points
| Component | What the filings show | Points | Of |
|---|---|---|---|
| Accruals | accruals of -9.7% of assets, lower than 83% of companies (profit backed by cash) | 24 | 29 |
| Montier C-score | Montier C-score 0 of 5 checks failed | 21 | 21 |
| Discretionary accruals | discretionary accruals of +2.2% of assets (modified Jones), smaller than most | 9 | 14 |
| Piotroski F-score | Piotroski F-score 5 of 9 | 8 | 14 |
| Non-GAAP gap | adjusted earnings 2% below GAAP | 13 | 14 |
| Earnings smoothness | profit about as variable as cash flow (smoothness 0.73) | 7 | 7 |
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 → ConocoPhillips: 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.