Filing Flows

Filing Flows › Companies › Walt Disney › Earnings quality

Walt Disney earnings quality score

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

Score55 / 100 · grade C · rank 799 of 1027

Walt Disney (DIS) scores 55 of 100 for earnings quality, grade C: rank 799 of 1027 companies and 25 of 30 in communication. It loses the most points on accruals of -2.9% of assets, higher than 64% of companies (profit backed by cash), Montier C-score 3 of 5 checks failed, adjusted earnings 25% below GAAP. It earns full or near-full marks for discretionary accruals of -0.4% of assets (modified Jones), smaller than most, profit about as variable as cash flow (smoothness 1.01).

What earned and lost points

ComponentWhat the filings showPointsOf
Accrualsaccruals of -2.9% of assets, higher than 64% of companies (profit backed by cash)1027
Dechow F-scoreDechow F-score 1.29 (above normal)1620
Montier C-scoreMontier C-score 3 of 5 checks failed820
Discretionary accrualsdiscretionary accruals of -0.4% of assets (modified Jones), smaller than most1213
Non-GAAP gapadjusted earnings 25% below GAAP213
Earnings smoothnessprofit about as variable as cash flow (smoothness 1.01)77
DIS: share of the available points, by componentDIS: share of the available points, by componentAccruals36%Discretionary accruals92%Dechow F-score80%Montier C-score40%Non-GAAP gap15%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 → Walt Disney: 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.