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3 posts tagged quality.
3 posts
Accruals Quality: How to Spot Earnings That Aren't Real
Accruals measure the gap between reported earnings and actual cash. Widening accruals is one of the most reliable red flags in financial analysis — Sloan's 1996 paper showed high-accrual names underperform low-accrual names by ~10% per year.
#accruals#quality#earnings#fundamentals
Piotroski F-Score: A 9-Point Checklist for Financial Strength
Inside the cheap-book-value quintile, Piotroski's 9 yes/no tests separated winners from dead money. The uncomfortable insight: cheap stocks don't outperform on average; they outperform only in the sub-sample with improving fundamentals.
#piotroski#quality#value#fundamentals
Return on Equity: The Number That Separates Good Companies from Great Ones
How to use ROE to identify high-quality businesses, why the DuPont decomposition matters, and the leverage trap that inflates the metric.
#fundamentals#roe#quality