Filing Flows › Companies › NRG Energy › Earnings quality
NRG Energy earnings quality score
How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show
Score29 / 100 · grade E · rank 1010 of 1027
NRG Energy (NRG) scores 29 of 100 for earnings quality, grade E: rank 1010 of 1027 companies and 55 of 55 in utilities. It loses the most points on Montier C-score 4 of 4 checks failed, accruals of -4.0% of assets, higher than 52% of companies (profit backed by cash), adjusted earnings 37% below GAAP. It earns full or near-full marks for profit about as variable as cash flow (smoothness 0.71).
What earned and lost points
| Component | What the filings show | Points | Of |
|---|---|---|---|
| Accruals | accruals of -4.0% of assets, higher than 52% of companies (profit backed by cash) | 19 | 40 |
| Montier C-score | Montier C-score 4 of 4 checks failed | 0 | 30 |
| Non-GAAP gap | adjusted earnings 37% below GAAP | 0 | 20 |
| Earnings smoothness | profit about as variable as cash flow (smoothness 0.71) | 10 | 10 |
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 → NRG Energy: 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.