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Ingevity 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 593 of 1027

Ingevity (NGVT) scores 64 of 100 for earnings quality, grade C: rank 593 of 1027 companies and 59 of 82 in materials. It loses the most points on adjusted earnings 68% below GAAP, discretionary accruals of -15.3% of assets (modified Jones), larger than most, Montier C-score 1 of 5 checks failed. It earns full or near-full marks for accruals of -27.1% of assets, lower than 99% of companies (profit backed by cash), profit about as variable as cash flow (smoothness 2.38).

What earned and lost points

ComponentWhat the filings showPointsOf
Accrualsaccruals of -27.1% of assets, lower than 99% of companies (profit backed by cash)2829
Montier C-scoreMontier C-score 1 of 5 checks failed1721
Discretionary accrualsdiscretionary accruals of -15.3% of assets (modified Jones), larger than most114
Piotroski F-scorePiotroski F-score 7 of 91114
Non-GAAP gapadjusted earnings 68% below GAAP014
Earnings smoothnessprofit about as variable as cash flow (smoothness 2.38)77
NGVT: share of the available points, by componentNGVT: share of the available points, by componentAccruals99%Discretionary accruals5%Montier C-score80%Piotroski F-score78%Earnings smoothness100%

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 → Ingevity: 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.