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Dollar General earnings quality score

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

Score88 / 100 · grade A · rank 6 of 1027

Dollar General (DG) scores 88 of 100 for earnings quality, grade A: rank 6 of 1027 companies and 2 of 141 in consumer-disc. It loses the most points on accruals of -6.8% of assets, lower than 71% of companies (profit backed by cash), discretionary accruals of -0.9% of assets (modified Jones), smaller than most. It earns full or near-full marks for Piotroski F-score 8 of 9, adjusted and GAAP earnings agree, Montier C-score 0 of 5 checks failed.

What earned and lost points

ComponentWhat the filings showPointsOf
Accrualsaccruals of -6.8% of assets, lower than 71% of companies (profit backed by cash)2029
Montier C-scoreMontier C-score 0 of 5 checks failed2121
Discretionary accrualsdiscretionary accruals of -0.9% of assets (modified Jones), smaller than most1214
Piotroski F-scorePiotroski F-score 8 of 91314
Non-GAAP gapadjusted and GAAP earnings agree1414
Earnings smoothnessprofit about as variable as cash flow (smoothness 0.80)77
DG: share of the available points, by componentDG: share of the available points, by componentAccruals71%Discretionary accruals85%Montier C-score100%Piotroski F-score89%Non-GAAP gap99%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 → Dollar General: 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.