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Crane NXT earnings quality score

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

Score57 / 100 · grade C · rank 773 of 1027

Crane NXT (CXT) scores 57 of 100 for earnings quality, grade C: rank 773 of 1027 companies and 193 of 287 in industrials. It loses the most points on accruals of -3.5% of assets, higher than 57% of companies (profit backed by cash), Montier C-score 4 of 6 checks failed, adjusted earnings 48% below GAAP. It earns full or near-full marks for discretionary accruals of -0.1% of assets (modified Jones), smaller than most, Beneish M-score -2.36: clean (below −2.22), profit about as variable as cash flow (smoothness 0.74).

What earned and lost points

ComponentWhat the filings showPointsOf
Accrualsaccruals of -3.5% of assets, higher than 57% of companies (profit backed by cash)920
Beneish M-scoreBeneish M-score -2.36: clean (below −2.22)1515
Dechow F-scoreDechow F-score 1.71 (above normal)815
Montier C-scoreMontier C-score 4 of 6 checks failed515
Discretionary accrualsdiscretionary accruals of -0.1% of assets (modified Jones), smaller than most1010
Piotroski F-scorePiotroski F-score 5 of 9610
Non-GAAP gapadjusted earnings 48% below GAAP010
Earnings smoothnessprofit about as variable as cash flow (smoothness 0.74)55
CXT: share of the available points, by componentCXT: share of the available points, by componentAccruals43%Discretionary accruals98%Beneish M-score100%Dechow F-score51%Montier C-score33%Piotroski F-score56%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.

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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.