Filing Flows › Companies › ESCO Technologies › Earnings quality
ESCO Technologies earnings quality score
How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show
Score44 / 100 · grade D · rank 935 of 1027
ESCO Technologies (ESE) scores 44 of 100 for earnings quality, grade D: rank 935 of 1027 companies and 187 of 203 in technology. It loses the most points on accruals of +2.7% of assets, higher than 93% of companies, adjusted earnings 51% above GAAP, Dechow F-score 1.80 (above normal). It earns full or near-full marks for Beneish M-score -2.22: in the grey zone, profit about as variable as cash flow (smoothness 1.79). Revenue grew 34% 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 +2.7% of assets, higher than 93% of companies | 1 | 20 |
| Beneish M-score | Beneish M-score -2.22: in the grey zone | 15 | 15 |
| Dechow F-score | Dechow F-score 1.80 (above normal) | 7 | 15 |
| Montier C-score | Montier C-score 3 of 6 checks failed | 8 | 15 |
| Discretionary accruals | discretionary accruals of +5.4% of assets (modified Jones), larger than most | 3 | 10 |
| Piotroski F-score | Piotroski F-score 5 of 9 | 6 | 10 |
| Non-GAAP gap | adjusted earnings 51% above GAAP | 0 | 10 |
| Earnings smoothness | profit about as variable as cash flow (smoothness 1.79) | 5 | 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.
Every company ranked → The full quality workbench, live → ESCO Technologies: 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.