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Copart earnings quality score

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

Score64 / 100 · grade C · rank 572 of 1027

Copart (CPRT) scores 64 of 100 for earnings quality, grade C: rank 572 of 1027 companies and 85 of 141 in consumer-disc. It loses the most points on accruals of -1.2% of assets, higher than 78% of companies, Montier C-score 2 of 5 checks failed, discretionary accruals of +3.6% of assets (modified Jones), larger than most. It earns full or near-full marks for Dechow F-score 0.36 (normal), adjusted and GAAP earnings agree, profit about as variable as cash flow (smoothness 1.02).

What earned and lost points

ComponentWhat the filings showPointsOf
Accrualsaccruals of -1.2% of assets, higher than 78% of companies627
Dechow F-scoreDechow F-score 0.36 (normal)2020
Montier C-scoreMontier C-score 2 of 5 checks failed1220
Discretionary accrualsdiscretionary accruals of +3.6% of assets (modified Jones), larger than most613
Non-GAAP gapadjusted and GAAP earnings agree1313
Earnings smoothnessprofit about as variable as cash flow (smoothness 1.02)77
CPRT: share of the available points, by componentCPRT: share of the available points, by componentAccruals22%Discretionary accruals46%Dechow F-score100%Montier C-score60%Non-GAAP gap100%Earnings smoothness100%

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 → Copart: 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.