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CSX earnings quality score

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

Score67 / 100 · grade B · rank 453 of 1027

CSX (CSX) scores 67 of 100 for earnings quality, grade B: rank 453 of 1027 companies and 99 of 287 in industrials. It loses the most points on Montier C-score 4 of 5 checks failed, accruals of -4.0% of assets, higher than 52% of companies (profit backed by cash), discretionary accruals of +1.0% of assets (modified Jones), smaller than most. It earns full or near-full marks for adjusted earnings 1% below GAAP, Dechow F-score 0.39 (normal), profit about as variable as cash flow (smoothness 1.07).

What earned and lost points

ComponentWhat the filings showPointsOf
Accrualsaccruals of -4.0% of assets, higher than 52% of companies (profit backed by cash)1327
Dechow F-scoreDechow F-score 0.39 (normal)2020
Montier C-scoreMontier C-score 4 of 5 checks failed420
Discretionary accrualsdiscretionary accruals of +1.0% of assets (modified Jones), smaller than most1113
Non-GAAP gapadjusted earnings 1% below GAAP1313
Earnings smoothnessprofit about as variable as cash flow (smoothness 1.07)77
CSX: share of the available points, by componentCSX: share of the available points, by componentAccruals48%Discretionary accruals82%Dechow F-score100%Montier C-score20%Non-GAAP gap97%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 → CSX: 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.