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TheRealReal earnings quality score
How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show
Score17 / 100 · grade E · rank 1025 of 1027
TheRealReal (REAL) scores 17 of 100 for earnings quality, grade E: rank 1025 of 1027 companies and 141 of 141 in consumer-disc. It loses the most points on accruals of +10037.4% of assets, higher than 100% of companies (profit running ahead of cash), Beneish M-score 475.77: flagged (above −1.78), Dechow F-score 270.27 (high).
What earned and lost points
| Component | What the filings show | Points | Of |
|---|---|---|---|
| Accruals | accruals of +10037.4% of assets, higher than 100% of companies (profit running ahead of cash) | 0 | 27 |
| Beneish M-score | Beneish M-score 475.77: flagged (above −1.78) | 0 | 20 |
| Dechow F-score | Dechow F-score 270.27 (high) | 0 | 20 |
| Montier C-score | Montier C-score 3 of 6 checks failed | 10 | 20 |
| Piotroski F-score | Piotroski F-score 5 of 9 | 7 | 13 |
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 → TheRealReal: 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.