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GE Vernova earnings quality score

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

Score42 / 100 · grade D · rank 944 of 1027

GE Vernova (GEV) scores 42 of 100 for earnings quality, grade D: rank 944 of 1027 companies and 246 of 287 in industrials. It loses the most points on accruals of -0.2% of assets, higher than 85% of companies, Montier C-score 5 of 5 checks failed, Piotroski F-score 7 of 9. It earns full or near-full marks for adjusted earnings 1% below GAAP, profit about as variable as cash flow (smoothness 1.63).

What earned and lost points

ComponentWhat the filings showPointsOf
Accrualsaccruals of -0.2% of assets, higher than 85% of companies533
Montier C-scoreMontier C-score 5 of 5 checks failed025
Piotroski F-scorePiotroski F-score 7 of 91317
Non-GAAP gapadjusted earnings 1% below GAAP1617
Earnings smoothnessprofit about as variable as cash flow (smoothness 1.63)88
GEV: share of the available points, by componentGEV: share of the available points, by componentAccruals15%Piotroski F-score78%Non-GAAP gap95%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.

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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.