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Wingstop earnings quality score

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

Score64 / 100 · grade C · rank 589 of 1027

Wingstop (WING) scores 64 of 100 for earnings quality, grade C: rank 589 of 1027 companies and 88 of 141 in consumer-disc. It loses the most points on accruals of +3.0% of assets, higher than 94% of companies, Montier C-score 2 of 5 checks failed, adjusted earnings 6% below GAAP. It earns full or near-full marks for discretionary accruals of +0.0% of assets (modified Jones), smaller than most, Dechow F-score 0.30 (normal), profit about as variable as cash flow (smoothness 0.79).

What earned and lost points

ComponentWhat the filings showPointsOf
Accrualsaccruals of +3.0% of assets, higher than 94% of companies227
Dechow F-scoreDechow F-score 0.30 (normal)2020
Montier C-scoreMontier C-score 2 of 5 checks failed1220
Discretionary accrualsdiscretionary accruals of +0.0% of assets (modified Jones), smaller than most1313
Non-GAAP gapadjusted earnings 6% below GAAP1113
Earnings smoothnessprofit about as variable as cash flow (smoothness 0.79)77
WING: share of the available points, by componentWING: share of the available points, by componentAccruals6%Discretionary accruals99%Dechow F-score100%Montier C-score60%Non-GAAP gap80%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 → Wingstop: 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.