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Textron earnings quality score
How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show
Score36 / 100 · grade D · rank 983 of 1027
Textron (TXT) scores 36 of 100 for earnings quality, grade D: rank 983 of 1027 companies and 264 of 287 in industrials. It loses the most points on accruals of -2.2% of assets, higher than 70% of companies (profit backed by cash), adjusted earnings 18% below GAAP, profit far steadier than cash flow (smoothness 0.16).
What earned and lost points
| Component | What the filings show | Points | Of |
|---|---|---|---|
| Accruals | accruals of -2.2% of assets, higher than 70% of companies (profit backed by cash) | 13 | 44 |
| Discretionary accruals | discretionary accruals of +2.3% of assets (modified Jones), smaller than most | 14 | 22 |
| Non-GAAP gap | adjusted earnings 18% below GAAP | 9 | 22 |
| Earnings smoothness | profit far steadier than cash flow (smoothness 0.16) | 0 | 11 |
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 → Textron: 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.