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Dick's Sporting Goods earnings quality score
How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show
Score51 / 100 · grade C · rank 864 of 1027
Dick's Sporting Goods (DKS) scores 51 of 100 for earnings quality, grade C: rank 864 of 1027 companies and 124 of 141 in consumer-disc. It loses the most points on Montier C-score 4 of 5 checks failed, accruals of -4.9% of assets, lower than 58% of companies (profit backed by cash), adjusted earnings 22% below GAAP. It earns full or near-full marks for profit about as variable as cash flow (smoothness 0.95). Revenue grew 54% 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 -4.9% of assets, lower than 58% of companies (profit backed by cash) | 16 | 29 |
| Montier C-score | Montier C-score 4 of 5 checks failed | 4 | 21 |
| Discretionary accruals | discretionary accruals of +1.0% of assets (modified Jones), smaller than most | 12 | 14 |
| Piotroski F-score | Piotroski F-score 5 of 9 | 8 | 14 |
| Non-GAAP gap | adjusted earnings 22% below GAAP | 4 | 14 |
| Earnings smoothness | profit about as variable as cash flow (smoothness 0.95) | 7 | 7 |
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.