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Kroger earnings quality score
How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show
Score83 / 100 · grade A · rank 25 of 1027
Kroger (KR) scores 83 of 100 for earnings quality, grade A: rank 25 of 1027 companies and 4 of 48 in consumer-staples. It loses the most points on discretionary accruals of -2.9% of assets (modified Jones), smaller than most, Montier C-score 1 of 5 checks failed, accruals of -12.3% of assets, lower than 89% of companies (profit backed by cash). It earns full or near-full marks for Dechow F-score 0.69 (normal).
What earned and lost points
| Component | What the filings show | Points | Of |
|---|---|---|---|
| Accruals | accruals of -12.3% of assets, lower than 89% of companies (profit backed by cash) | 27 | 31 |
| Dechow F-score | Dechow F-score 0.69 (normal) | 23 | 23 |
| Montier C-score | Montier C-score 1 of 5 checks failed | 18 | 23 |
| Discretionary accruals | discretionary accruals of -2.9% of assets (modified Jones), smaller than most | 8 | 15 |
| Earnings smoothness | profit steadier than cash flow (smoothness 0.57) | 6 | 8 |
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 → Kroger: 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.