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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
| Component | What the filings show | Points | Of |
|---|---|---|---|
| Accruals | accruals of -9.2% of assets, lower than 81% of companies (profit backed by cash) | 22 | 27 |
| Dechow F-score | Dechow F-score 0.39 (normal) | 20 | 20 |
| Montier C-score | Montier C-score 1 of 5 checks failed | 16 | 20 |
| Discretionary accruals | discretionary accruals of +0.7% of assets (modified Jones), smaller than most | 12 | 13 |
| Non-GAAP gap | adjusted earnings 107% below GAAP | 0 | 13 |
| Earnings smoothness | profit about as variable as cash flow (smoothness 2.56) | 7 | 7 |
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.