Module 19.5 LOS 19.e: Balance Sheet Accruals Ratios
The fewer accrual accounting adjustments that are made from operating cash flow, the higher the earnings quality will be. We …
earnings quality
Module 18.2 LOS 18.e and 18.f: Indicators of earnings quality and the concept of sustainable earnings
High-quality earnings are characterized by two elements: Sustainable: high-quality earnings tend to persist in the future. Adequate: high-quality earnings cover …
Module 18.3 LOS 18.h: Evaluate the earnings of a company
Earnings recognition can be subjective; therefore, analysts should assess the quality of earnings, not just the value. There are many …