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NorthWestern Energy Group earnings quality score

How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show

Score54 / 100 · grade C · rank 824 of 1027

NorthWestern Energy Group (NWE) scores 54 of 100 for earnings quality, grade C: rank 824 of 1027 companies and 47 of 55 in utilities. It loses the most points on accruals of -2.6% of assets, higher than 67% of companies (profit backed by cash), adjusted earnings 25% below GAAP, discretionary accruals of +3.0% of assets (modified Jones), smaller than most. It earns full or near-full marks for Dechow F-score 0.43 (normal).

What earned and lost points

ComponentWhat the filings showPointsOf
Accrualsaccruals of -2.6% of assets, higher than 67% of companies (profit backed by cash)927
Dechow F-scoreDechow F-score 0.43 (normal)2020
Montier C-scoreMontier C-score 1 of 5 checks failed1620
Discretionary accrualsdiscretionary accruals of +3.0% of assets (modified Jones), smaller than most713
Non-GAAP gapadjusted earnings 25% below GAAP213
Earnings smoothnessprofit far steadier than cash flow (smoothness 0.22)07
NWE: share of the available points, by componentNWE: share of the available points, by componentAccruals33%Discretionary accruals52%Dechow F-score100%Montier C-score80%Non-GAAP gap16%Earnings smoothness4%

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.