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Reynolds Consumer Products earnings quality score
How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show
Score66 / 100 · grade B · rank 514 of 1027
Reynolds Consumer Products (REYN) scores 66 of 100 for earnings quality, grade B: rank 514 of 1027 companies and 55 of 82 in materials. It loses the most points on accruals of -3.6% of assets, higher than 56% of companies (profit backed by cash), Montier C-score 2 of 6 checks failed, profit far steadier than cash flow (smoothness 0.23). It earns full or near-full marks for discretionary accruals of +0.7% of assets (modified Jones), smaller than most, Beneish M-score -2.53: clean (below −2.22).
What earned and lost points
| Component | What the filings show | Points | Of |
|---|---|---|---|
| Accruals | accruals of -3.6% of assets, higher than 56% of companies (profit backed by cash) | 9 | 20 |
| Beneish M-score | Beneish M-score -2.53: clean (below −2.22) | 15 | 15 |
| Dechow F-score | Dechow F-score 1.43 (above normal) | 10 | 15 |
| Montier C-score | Montier C-score 2 of 6 checks failed | 10 | 15 |
| Discretionary accruals | discretionary accruals of +0.7% of assets (modified Jones), smaller than most | 9 | 10 |
| Piotroski F-score | Piotroski F-score 5 of 9 | 6 | 10 |
| Non-GAAP gap | adjusted earnings 8% below GAAP | 7 | 10 |
| Earnings smoothness | profit far steadier than cash flow (smoothness 0.23) | 0 | 5 |
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.
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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.