Filing Flows › Companies › Lowe's Companies › Earnings quality
Lowe's Companies earnings quality score
How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show
Score61 / 100 · grade C · rank 662 of 1027
Lowe's Companies (LOW) scores 61 of 100 for earnings quality, grade C: rank 662 of 1027 companies and 98 of 141 in consumer-disc. It loses the most points on Beneish M-score 7.25: flagged (above −1.78), Montier C-score 3 of 6 checks failed, accruals of -6.6% of assets, lower than 69% of companies (profit backed by cash). It earns full or near-full marks for Dechow F-score 1.18 (above normal), adjusted earnings 5% below GAAP, profit about as variable as cash flow (smoothness 1.27).
What earned and lost points
| Component | What the filings show | Points | Of |
|---|---|---|---|
| Accruals | accruals of -6.6% of assets, lower than 69% of companies (profit backed by cash) | 14 | 20 |
| Beneish M-score | Beneish M-score 7.25: flagged (above −1.78) | 0 | 15 |
| Dechow F-score | Dechow F-score 1.18 (above normal) | 13 | 15 |
| Montier C-score | Montier C-score 3 of 6 checks failed | 8 | 15 |
| Discretionary accruals | discretionary accruals of -2.3% of assets (modified Jones), smaller than most | 6 | 10 |
| Piotroski F-score | Piotroski F-score 6 of 9 | 7 | 10 |
| Non-GAAP gap | adjusted earnings 5% below GAAP | 8 | 10 |
| Earnings smoothness | profit about as variable as cash flow (smoothness 1.27) | 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 → Lowe's Companies: 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.