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Nutanix earnings quality score
How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show
Score33 / 100 · grade E · rank 999 of 1027
Nutanix (NTNX) scores 33 of 100 for earnings quality, grade E: rank 999 of 1027 companies and 198 of 203 in technology. It loses the most points on accruals of +14.1% of assets, higher than 98% of companies (profit running ahead of cash), Beneish M-score -1.47: flagged (above −1.78), adjusted earnings far above GAAP (more than ten times apart). It earns full or near-full marks for Dechow F-score 0.51 (normal), profit about as variable as cash flow (smoothness 2.90).
What earned and lost points
| Component | What the filings show | Points | Of |
|---|---|---|---|
| Accruals | accruals of +14.1% of assets, higher than 98% of companies (profit running ahead of cash) | 0 | 20 |
| Beneish M-score | Beneish M-score -1.47: flagged (above −1.78) | 0 | 15 |
| Dechow F-score | Dechow F-score 0.51 (normal) | 15 | 15 |
| Montier C-score | Montier C-score 3 of 5 checks failed | 6 | 15 |
| Discretionary accruals | discretionary accruals of +13.7% of assets (modified Jones), larger than most | 1 | 10 |
| Piotroski F-score | Piotroski F-score 5 of 9 | 6 | 10 |
| Non-GAAP gap | adjusted earnings far above GAAP (more than ten times apart) | 0 | 10 |
| Earnings smoothness | profit about as variable as cash flow (smoothness 2.90) | 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.
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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.