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Valero Energy earnings quality score
How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show
Score77 / 100 · grade B · rank 107 of 1027
Valero Energy (VLO) scores 77 of 100 for earnings quality, grade B: rank 107 of 1027 companies and 13 of 34 in energy. It loses the most points on Montier C-score 4 of 6 checks failed, accruals of -5.9% of assets, lower than 64% of companies (profit backed by cash), Piotroski F-score 6 of 9. It earns full or near-full marks for adjusted earnings 6% below GAAP, discretionary accruals of +0.2% of assets (modified Jones), smaller than most, Beneish M-score -2.91: clean (below −2.22).
What earned and lost points
| Component | What the filings show | Points | Of |
|---|---|---|---|
| Accruals | accruals of -5.9% of assets, lower than 64% of companies (profit backed by cash) | 13 | 20 |
| Beneish M-score | Beneish M-score -2.91: clean (below −2.22) | 15 | 15 |
| Dechow F-score | Dechow F-score 0.23 (normal) | 15 | 15 |
| Montier C-score | Montier C-score 4 of 6 checks failed | 5 | 15 |
| Discretionary accruals | discretionary accruals of +0.2% of assets (modified Jones), smaller than most | 10 | 10 |
| Piotroski F-score | Piotroski F-score 6 of 9 | 7 | 10 |
| Non-GAAP gap | adjusted earnings 6% below GAAP | 8 | 10 |
| Earnings smoothness | profit about as variable as cash flow (smoothness 1.20) | 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 → Valero Energy: 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.