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F5 earnings quality score
How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show
Score80 / 100 · grade A · rank 58 of 1027
F5 (FFIV) scores 80 of 100 for earnings quality, grade A: rank 58 of 1027 companies and 10 of 203 in technology. It loses the most points on accruals of -4.3% of assets, lower than 52% of companies (profit backed by cash), Montier C-score 3 of 6 checks failed. It earns full or near-full marks for discretionary accruals of -0.8% of assets (modified Jones), smaller than most, Beneish M-score -2.61: clean (below −2.22), Dechow F-score 0.47 (normal).
What earned and lost points
| Component | What the filings show | Points | Of |
|---|---|---|---|
| Accruals | accruals of -4.3% of assets, lower than 52% of companies (profit backed by cash) | 12 | 22 |
| Beneish M-score | Beneish M-score -2.61: clean (below −2.22) | 17 | 17 |
| Dechow F-score | Dechow F-score 0.47 (normal) | 17 | 17 |
| Montier C-score | Montier C-score 3 of 6 checks failed | 8 | 17 |
| Discretionary accruals | discretionary accruals of -0.8% of assets (modified Jones), smaller than most | 10 | 11 |
| Piotroski F-score | Piotroski F-score 9 of 9 | 11 | 11 |
| Earnings smoothness | profit about as variable as cash flow (smoothness 0.91) | 6 | 6 |
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 → F5: 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.