Filing Flows › Companies › Sphere Entertainment › Earnings quality
Sphere Entertainment earnings quality score
How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show
Score56 / 100 · grade C · rank 791 of 1027
Sphere Entertainment (SPHR) scores 56 of 100 for earnings quality, grade C: rank 791 of 1027 companies and 23 of 30 in communication. It loses the most points on adjusted earnings far below GAAP (more than ten times apart), accruals of -5.2% of assets, lower than 60% of companies (profit backed by cash), discretionary accruals of +2.9% of assets (modified Jones), smaller than most. It earns full or near-full marks for profit about as variable as cash flow (smoothness 2.43).
What earned and lost points
| Component | What the filings show | Points | Of |
|---|---|---|---|
| Accruals | accruals of -5.2% of assets, lower than 60% of companies (profit backed by cash) | 20 | 33 |
| Montier C-score | Montier C-score 1 of 4 checks failed | 19 | 25 |
| Discretionary accruals | discretionary accruals of +2.9% of assets (modified Jones), smaller than most | 9 | 17 |
| Non-GAAP gap | adjusted earnings far below GAAP (more than ten times apart) | 0 | 17 |
| Earnings smoothness | profit about as variable as cash flow (smoothness 2.43) | 8 | 8 |
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 → Sphere Entertainment: 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.