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PureCycle Technologies earnings quality score
How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show
Score51 / 100 · grade C · rank 874 of 1027
PureCycle Technologies (PCT) scores 51 of 100 for earnings quality, grade C: rank 874 of 1027 companies and 75 of 82 in materials. It loses the most points on accruals of -4.6% of assets, lower than 55% of companies (profit backed by cash), discretionary accruals of +9.8% of assets (modified Jones), larger than most, adjusted earnings 12% below GAAP. It earns full or near-full marks for profit about as variable as cash flow (smoothness 2.16).
What earned and lost points
| Component | What the filings show | Points | Of |
|---|---|---|---|
| Accruals | accruals of -4.6% of assets, lower than 55% of companies (profit backed by cash) | 24 | 44 |
| Discretionary accruals | discretionary accruals of +9.8% of assets (modified Jones), larger than most | 2 | 22 |
| Non-GAAP gap | adjusted earnings 12% below GAAP | 13 | 22 |
| Earnings smoothness | profit about as variable as cash flow (smoothness 2.16) | 11 | 11 |
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 → PureCycle Technologies: 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.