earnings quality

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Earnings Quality

A condition describing how earnings are recognized. Earnings of high quality are attributable to conservative accounting standards and/or strong cash flows. Low quality earnings come from artificial sources, such as inflation or aggressive accounting. For example, a publicly-traded company may claim strong earnings and consequently have a high stock price. However, the company may have low cash flow from operations and the strong earnings may come mainly from the accounting structures it uses. Therefore, its stock is overvalued. Quality of earnings ratings is subjective, but it does take into account matters such as corporate governance, inventory to sales ratios, and other factors.

earnings quality

The extent to which a firm's reported earnings accurately reflect income for that period. Firms using conservative accounting practices tend to penalize current earnings and are said to have high earnings quality. At least over the short run, the earnings reported by a firm are as much a function of its accounting methods as they are a measure of its business success. Also called quality of earnings. See also inventory profit.
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They finally conclude that each company's characteristic like the absolute value of the amount of accruals, length of operating cycle, standard deviation of sales, cash flows, accruals and size of company can be used as a tool to earning quality assessment.
The 2014 Scorecard reviewed 94 early learning care programs, with more than 40 programs earning quality ratings.
According to an analyst, the banks are performing perfectly by being defensive, having high yield stocks and earning quality amounts.
Table 1: Findings of descriptive statistics Earning Quality EBIT Descriptive Richardson Dechow Statistics model & Dichev Artificial Real model Mean -0.
The evening opened promisingly for the Midlands with Dudley's Ryan Aston and Coseley's Tommy Ghent both earning quality victories before the Prizefighter event started.
Our strategy at Trupiano & Associates is simple: Continue to focus on our clients, and work toward earning quality referrals from our current client base.
Earning Quality Achievement Awards, the next level that recognizes organizations that have demonstrated significant progress in building sound and notable quality processes, were Altronic Research Inc.
HubSpot's Inbound Marketing Software gives you all the tools you need to make marketing that people will actually love - earning quality leads and loyal customers in return.
In statistical hypothesis above, dp represent average of coupled data of accounting earning quality.
Earning Quality Interest Awards were Arkansas Administrative Office of the Courts of Little Rock, Beverly Healthcare of Arkadelphia, Beverly Healthcare of El Dorado, Beverly Healthcare of Heber Springs, Beverly Healthcare Magnolia Manor of Magnolia, Beverly Healthcare South Arkansas Speciality Division of Hamburg, Beverly Healthcare of West Memphis, Countrywood Estates of Monticello, Kemlite of Jonesboro and Pulaski Enterprise Community Alliance Inc.
The pet food segment represented approximately a third of Spectrum's EBITDA before corporate overhead and is a steady year-round performer which improves the company's earning quality.
Based on this, this research aims to study the relationship between competition in the product market and the earning quality in the accepted companies in Tehran, s stock market.