Filing Flows › Companies › Insmed › Earnings quality
Insmed earnings quality score
How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show
Score63 / 100 · grade C · rank 608 of 1027
Insmed (INSM) scores 63 of 100 for earnings quality, grade C: rank 608 of 1027 companies and 67 of 126 in health. It loses the most points on Beneish M-score -1.90: in the grey zone, Montier C-score 3 of 5 checks failed, Dechow F-score 1.83 (above normal). It earns full or near-full marks for accruals of -15.9% of assets, lower than 94% of companies (profit backed by cash), discretionary accruals of 0.0% of assets (modified Jones), smaller than most, profit about as variable as cash flow (smoothness 1.77). Revenue grew 240% 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 -15.9% of assets, lower than 94% of companies (profit backed by cash) | 19 | 20 |
| Beneish M-score | Beneish M-score -1.90: in the grey zone | 4 | 15 |
| Dechow F-score | Dechow F-score 1.83 (above normal) | 6 | 15 |
| Montier C-score | Montier C-score 3 of 5 checks failed | 6 | 15 |
| Discretionary accruals | discretionary accruals of 0.0% of assets (modified Jones), smaller than most | 10 | 10 |
| Piotroski F-score | Piotroski F-score 5 of 9 | 6 | 10 |
| Non-GAAP gap | adjusted earnings 8% below GAAP | 7 | 10 |
| Earnings smoothness | profit about as variable as cash flow (smoothness 1.77) | 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 → Insmed: 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.