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Intuit earnings quality score

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

Score64 / 100 · grade C · rank 565 of 1027

Intuit (INTU) scores 64 of 100 for earnings quality, grade C: rank 565 of 1027 companies and 128 of 203 in technology. It loses the most points on adjusted earnings 32% below GAAP, Montier C-score 2 of 4 checks failed, discretionary accruals of -3.8% of assets (modified Jones), larger than most. It earns full or near-full marks for profit steadier than cash flow (smoothness 0.61), Dechow F-score 0.52 (normal).

What earned and lost points

ComponentWhat the filings showPointsOf
Accrualsaccruals of -11.6% of assets, lower than 87% of companies (profit backed by cash)2327
Dechow F-scoreDechow F-score 0.52 (normal)2020
Montier C-scoreMontier C-score 2 of 4 checks failed1020
Discretionary accrualsdiscretionary accruals of -3.8% of assets (modified Jones), larger than most613
Non-GAAP gapadjusted earnings 32% below GAAP013
Earnings smoothnessprofit steadier than cash flow (smoothness 0.61)57
INTU: share of the available points, by componentINTU: share of the available points, by componentAccruals87%Discretionary accruals44%Dechow F-score100%Montier C-score50%Earnings smoothness81%

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 → Intuit: 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.