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Sysco earnings quality score

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

Score65 / 100 · grade B · rank 534 of 1027

Sysco (SYY) scores 65 of 100 for earnings quality, grade B: rank 534 of 1027 companies and 120 of 287 in industrials. It loses the most points on accruals of -3.2% of assets, higher than 61% of companies (profit backed by cash), adjusted earnings 19% below GAAP, Montier C-score 1 of 4 checks failed. It earns full or near-full marks for discretionary accruals of -0.1% of assets (modified Jones), smaller than most, profit about as variable as cash flow (smoothness 1.18).

What earned and lost points

ComponentWhat the filings showPointsOf
Accrualsaccruals of -3.2% of assets, higher than 61% of companies (profit backed by cash)1129
Montier C-scoreMontier C-score 1 of 4 checks failed1621
Discretionary accrualsdiscretionary accruals of -0.1% of assets (modified Jones), smaller than most1414
Piotroski F-scorePiotroski F-score 7 of 91114
Non-GAAP gapadjusted earnings 19% below GAAP514
Earnings smoothnessprofit about as variable as cash flow (smoothness 1.18)77
SYY: share of the available points, by componentSYY: share of the available points, by componentAccruals39%Discretionary accruals99%Montier C-score75%Piotroski F-score78%Non-GAAP gap36%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 → Sysco: 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.