Filing Flows › Companies › Roku › Earnings quality
Roku earnings quality score
How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show
Score88 / 100 · grade A · rank 7 of 1027
Roku (ROKU) scores 88 of 100 for earnings quality, grade A: rank 7 of 1027 companies and 1 of 30 in communication. It loses the most points on discretionary accruals of -4.0% of assets (modified Jones), larger than most, accruals of -9.0% of assets, lower than 81% of companies (profit backed by cash), Piotroski F-score 7 of 9. It earns full or near-full marks for adjusted earnings 1% below GAAP, Beneish M-score -2.83: clean (below −2.22), Dechow F-score 0.38 (normal).
What earned and lost points
| Component | What the filings show | Points | Of |
|---|---|---|---|
| Accruals | accruals of -9.0% of assets, lower than 81% of companies (profit backed by cash) | 16 | 20 |
| Beneish M-score | Beneish M-score -2.83: clean (below −2.22) | 15 | 15 |
| Dechow F-score | Dechow F-score 0.38 (normal) | 15 | 15 |
| Montier C-score | Montier C-score 0 of 6 checks failed | 15 | 15 |
| Discretionary accruals | discretionary accruals of -4.0% of assets (modified Jones), larger than most | 4 | 10 |
| Piotroski F-score | Piotroski F-score 7 of 9 | 8 | 10 |
| Non-GAAP gap | adjusted earnings 1% below GAAP | 10 | 10 |
| Earnings smoothness | profit about as variable as cash flow (smoothness 2.74) | 5 | 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.
Every company ranked → The full quality workbench, live → Roku: 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.