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Kulicke & Soffa Industries earnings quality score
How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show
Score67 / 100 · grade B · rank 474 of 1027
Kulicke & Soffa Industries (KLIC) scores 67 of 100 for earnings quality, grade B: rank 474 of 1027 companies and 104 of 203 in technology. It loses the most points on Montier C-score 3 of 5 checks failed, adjusted earnings 20% below GAAP, accruals of -9.7% of assets, lower than 83% of companies (profit backed by cash). It earns full or near-full marks for Piotroski F-score 8 of 9, profit about as variable as cash flow (smoothness 1.87). Revenue grew 44% 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 -9.7% of assets, lower than 83% of companies (profit backed by cash) | 24 | 29 |
| Montier C-score | Montier C-score 3 of 5 checks failed | 9 | 21 |
| Discretionary accruals | discretionary accruals of -1.9% of assets (modified Jones), smaller than most | 10 | 14 |
| Piotroski F-score | Piotroski F-score 8 of 9 | 13 | 14 |
| Non-GAAP gap | adjusted earnings 20% below GAAP | 5 | 14 |
| Earnings smoothness | profit about as variable as cash flow (smoothness 1.87) | 7 | 7 |
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 → Kulicke & Soffa Industries: 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.