Filing Flows

Filing Flows › Companies › Rockwell Automation › Earnings quality

Rockwell Automation earnings quality score

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

Score72 / 100 · grade B · rank 248 of 1027

Rockwell Automation (ROK) scores 72 of 100 for earnings quality, grade B: rank 248 of 1027 companies and 45 of 287 in industrials. It loses the most points on accruals of -6.0% of assets, lower than 65% of companies (profit backed by cash), Dechow F-score 1.68 (above normal), Montier C-score 2 of 6 checks failed. It earns full or near-full marks for Piotroski F-score 8 of 9, Beneish M-score -2.69: clean (below −2.22), profit about as variable as cash flow (smoothness 0.73).

What earned and lost points

ComponentWhat the filings showPointsOf
Accrualsaccruals of -6.0% of assets, lower than 65% of companies (profit backed by cash)1422
Beneish M-scoreBeneish M-score -2.69: clean (below −2.22)1717
Dechow F-scoreDechow F-score 1.68 (above normal)917
Montier C-scoreMontier C-score 2 of 6 checks failed1117
Discretionary accrualsdiscretionary accruals of -3.0% of assets (modified Jones), smaller than most611
Piotroski F-scorePiotroski F-score 8 of 91011
Earnings smoothnessprofit about as variable as cash flow (smoothness 0.73)66
ROK: share of the available points, by componentROK: share of the available points, by componentAccruals65%Discretionary accruals52%Beneish M-score100%Dechow F-score53%Montier C-score66%Piotroski F-score89%Earnings smoothness100%

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 → Rockwell Automation: 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.