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VSE earnings quality score

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

Score40 / 100 · grade D · rank 965 of 1027

VSE (VSEC) scores 40 of 100 for earnings quality, grade D: rank 965 of 1027 companies and 257 of 287 in industrials. It loses the most points on accruals of -0.8% of assets, higher than 80% of companies, Dechow F-score 2.32 (substantial), discretionary accruals of +5.4% of assets (modified Jones), larger than most. Revenue grew 56% in the year: fast growth raises accruals, the Beneish and Dechow scores and the C-score by construction, so a growing company scores lower than a steady one with the same accounting.

What earned and lost points

ComponentWhat the filings showPointsOf
Accrualsaccruals of -0.8% of assets, higher than 80% of companies527
Dechow F-scoreDechow F-score 2.32 (substantial)220
Montier C-scoreMontier C-score 1 of 5 checks failed1620
Discretionary accrualsdiscretionary accruals of +5.4% of assets (modified Jones), larger than most413
Non-GAAP gapadjusted earnings 8% below GAAP1013
Earnings smoothnessprofit steadier than cash flow (smoothness 0.45)37
VSEC: share of the available points, by componentVSEC: share of the available points, by componentAccruals20%Discretionary accruals30%Dechow F-score9%Montier C-score80%Non-GAAP gap72%Earnings smoothness49%

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 → VSE: 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.