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Heico earnings quality score
How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show
Score76 / 100 · grade B · rank 132 of 1027
Heico (HEI) scores 76 of 100 for earnings quality, grade B: rank 132 of 1027 companies and 18 of 287 in industrials. It loses the most points on accruals of -3.0% of assets, higher than 62% of companies (profit backed by cash), Montier C-score 3 of 6 checks failed. It earns full or near-full marks for profit steadier than cash flow (smoothness 0.57), discretionary accruals of -0.7% of assets (modified Jones), smaller than most, Piotroski F-score 8 of 9.
What earned and lost points
| Component | What the filings show | Points | Of |
|---|---|---|---|
| Accruals | accruals of -3.0% of assets, higher than 62% of companies (profit backed by cash) | 8 | 20 |
| Beneish M-score | Beneish M-score -2.50: clean (below −2.22) | 15 | 15 |
| Dechow F-score | Dechow F-score 0.71 (normal) | 15 | 15 |
| Montier C-score | Montier C-score 3 of 6 checks failed | 8 | 15 |
| Discretionary accruals | discretionary accruals of -0.7% of assets (modified Jones), smaller than most | 9 | 10 |
| Piotroski F-score | Piotroski F-score 8 of 9 | 9 | 10 |
| Non-GAAP gap | adjusted and GAAP earnings agree | 10 | 10 |
| Earnings smoothness | profit steadier than cash flow (smoothness 0.57) | 4 | 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 → Heico: 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.