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Penn Entertainment earnings quality score

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

Score76 / 100 · grade B · rank 149 of 1027

Penn Entertainment (PENN) scores 76 of 100 for earnings quality, grade B: rank 149 of 1027 companies and 27 of 141 in consumer-disc. It loses the most points on adjusted earnings 107% below GAAP, accruals of -9.2% of assets, lower than 81% of companies (profit backed by cash), Montier C-score 1 of 5 checks failed. It earns full or near-full marks for discretionary accruals of +0.7% of assets (modified Jones), smaller than most, Dechow F-score 0.39 (normal), profit about as variable as cash flow (smoothness 2.56).

What earned and lost points

ComponentWhat the filings showPointsOf
Accrualsaccruals of -9.2% of assets, lower than 81% of companies (profit backed by cash)2227
Dechow F-scoreDechow F-score 0.39 (normal)2020
Montier C-scoreMontier C-score 1 of 5 checks failed1620
Discretionary accrualsdiscretionary accruals of +0.7% of assets (modified Jones), smaller than most1213
Non-GAAP gapadjusted earnings 107% below GAAP013
Earnings smoothnessprofit about as variable as cash flow (smoothness 2.56)77
PENN: share of the available points, by componentPENN: share of the available points, by componentAccruals81%Discretionary accruals89%Dechow F-score100%Montier C-score80%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 → Penn Entertainment: 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.