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Ralliant earnings quality score

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

Score58 / 100 · grade C · rank 747 of 1027

Ralliant (RAL) scores 58 of 100 for earnings quality, grade C: rank 747 of 1027 companies and 183 of 287 in industrials. It loses the most points on Montier C-score 4 of 6 checks failed, adjusted earnings 464% below GAAP, discretionary accruals of -17.0% of assets (modified Jones), larger than most. It earns full or near-full marks for accruals of -38.0% of assets, lower than 100% of companies (profit backed by cash), Beneish M-score -5.99: clean (below −2.22).

What earned and lost points

ComponentWhat the filings showPointsOf
Accrualsaccruals of -38.0% of assets, lower than 100% of companies (profit backed by cash)2121
Beneish M-scoreBeneish M-score -5.99: clean (below −2.22)1616
Dechow F-scoreDechow F-score 1.37 (above normal)1216
Montier C-scoreMontier C-score 4 of 6 checks failed516
Discretionary accrualsdiscretionary accruals of -17.0% of assets (modified Jones), larger than most010
Piotroski F-scorePiotroski F-score 3 of 9410
Non-GAAP gapadjusted earnings 464% below GAAP010
RAL: share of the available points, by componentRAL: share of the available points, by componentAccruals100%Discretionary accruals4%Beneish M-score100%Dechow F-score75%Montier C-score34%Piotroski F-score33%

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 → Ralliant: 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.