Owner Scorecard


← The flag registers

Flags

Earnings ahead of cash

Reported profit ran persistently ahead of operating cash (the through-cycle accrual gap), corroborated by a manipulation screen of eight balance-sheet ratios or wide enough to stand alone. Sometimes inventory in a real grower; sometimes earnings leaning on estimates.

The thresholdFires when total accruals run above 2% of assets a year through the cycle with the eight-ratio manipulation screen elevated, or above 5% of assets a year standing alone. Ordered by the width of the accrual gap.

71 companies

From the company's SEC filings and its MD&A, computed the same way as on its page. A fired flag is a fact about the filing, stated with its figure; what it means for the business is read on the company page, where the full panel sits.