Filing Flows › Companies › Parker-Hannifin › Earnings quality
Parker-Hannifin earnings quality score
How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show
Score63 / 100 · grade C · rank 599 of 1027
Parker-Hannifin (PH) scores 63 of 100 for earnings quality, grade C: rank 599 of 1027 companies and 133 of 287 in industrials. It loses the most points on accruals of -2.4% of assets, higher than 69% of companies (profit backed by cash), Montier C-score 3 of 5 checks failed, Dechow F-score 1.77 (above normal). It earns full or near-full marks for Beneish M-score -2.52: clean (below −2.22), Piotroski F-score 9 of 9, profit about as variable as cash flow (smoothness 1.50).
What earned and lost points
| Component | What the filings show | Points | Of |
|---|---|---|---|
| Accruals | accruals of -2.4% of assets, higher than 69% of companies (profit backed by cash) | 7 | 22 |
| Beneish M-score | Beneish M-score -2.52: clean (below −2.22) | 17 | 17 |
| Dechow F-score | Dechow F-score 1.77 (above normal) | 8 | 17 |
| Montier C-score | Montier C-score 3 of 5 checks failed | 7 | 17 |
| Discretionary accruals | discretionary accruals of -1.4% of assets (modified Jones), smaller than most | 8 | 11 |
| Piotroski F-score | Piotroski F-score 9 of 9 | 11 | 11 |
| Earnings smoothness | profit about as variable as cash flow (smoothness 1.50) | 6 | 6 |
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 → Parker-Hannifin: 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.