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Carvana earnings quality score
How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show
Score36 / 100 · grade D · rank 982 of 1027
Carvana (CVNA) scores 36 of 100 for earnings quality, grade D: rank 982 of 1027 companies and 139 of 141 in consumer-disc. It loses the most points on accruals of +3.4% of assets, higher than 94% of companies, Beneish M-score -1.39: flagged (above −1.78), adjusted earnings 282% above GAAP. It earns full or near-full marks for Dechow F-score 1.18 (above normal), profit steadier than cash flow (smoothness 0.56). Revenue grew 50% in the year: fast growth raises accruals, the Beneish and Dechow scores and the C-score by construction, so a growing company scores lower than a steady one with the same accounting.
What earned and lost points
| Component | What the filings show | Points | Of |
|---|---|---|---|
| Accruals | accruals of +3.4% of assets, higher than 94% of companies | 1 | 20 |
| Beneish M-score | Beneish M-score -1.39: flagged (above −1.78) | 0 | 15 |
| Dechow F-score | Dechow F-score 1.18 (above normal) | 13 | 15 |
| Montier C-score | Montier C-score 3 of 5 checks failed | 6 | 15 |
| Discretionary accruals | discretionary accruals of +2.8% of assets (modified Jones), smaller than most | 6 | 10 |
| Piotroski F-score | Piotroski F-score 6 of 9 | 7 | 10 |
| Non-GAAP gap | adjusted earnings 282% above GAAP | 0 | 10 |
| Earnings smoothness | profit steadier than cash flow (smoothness 0.56) | 4 | 5 |
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.
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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.