You receive a complete Earnings Quality analyst toolkit: accruals testing models, restatement-risk scoring matrices, cash-earnings gap analysis workbooks, red-flag detection checklists and forensic case studies. Built for finance analysts, auditors and investors who need to look past the headline EPS.
Headline deliverables
- Accruals Ratio Calculator (XLSX): Sloan ratio, modified Jones model, balance-sheet accruals decomposition
- Restatement Risk Scoring Matrix (XLSX): Beneish M-Score, F-Score, Z-Score, Dechow F-Score in one workbook
- Cash-Earnings Gap Model (XLSX): operating cash flow vs net income trend, free cash flow conversion, GAAP-to-cash bridge
- Red Flag Detection Worksheet (PDF + XLSX): 40+ signals across revenue, accruals, cash flow, related-party and disclosure quality
- Forensic Case Study Library (PDF): Enron, WorldCom, Wirecard, Luckin Coffee and 8 more, with the specific signals that would have flagged each
- Audit-Ready Report Templates (PDF + XLSX): earnings quality memo, audit committee briefing, investor research note
What is in each section
- 01 Introduction: definitions, stakeholders, why earnings quality matters in valuation
- 02 Financial Statement Analysis: balance sheet, income statement, cash flow statement read across
- 03 Earnings Quality Metrics: accruals, persistence, volatility, predictability scoring
- 04 Accruals Analysis: total accruals decomposition, discretionary vs non-discretionary, working-capital accruals
- 05 Revenue Recognition Quality: ASC 606 red flags, channel stuffing, bill-and-hold patterns
- 06 Expense Recognition Quality: capitalisation vs expense, depreciation aggressiveness, R&D treatment
- 07 Cash Flow Quality: operating vs financing classification, working capital manipulation, non-cash add-back review
- 08 Disclosure Quality: MD&A red flags, non-GAAP metric review, footnote depth scoring
- 09 Forensic Techniques: Benford's Law, ratio anomaly detection, peer benchmarking
- 10 Sector Adjustments: bank-specific, insurance-specific, tech and SaaS, real estate
- 11 Reporting and Communication: writing the earnings-quality memo, briefing the audit committee, investor communication
- 12 Reference Quick Cards: M-Score thresholds, F-Score cutoffs, common restatement patterns
Who this is built for
- Equity analysts doing fundamental research at buyside or sellside firms
- Internal auditors running quarterly close reviews
- External auditors on earnings quality and going concern assessments
- Forensic accountants investigating restatement and fraud cases
- Credit analysts scoring borrower earnings sustainability
- CFOs and Controllers stress-testing their own reporting
How you will use it in your first 30 minutes
- Drop a target company's last 3 years of financials into the Accruals Ratio Calculator
- Run the Restatement Risk Scoring Matrix on the same data
- Compare against the Red Flag Detection Worksheet and mark every signal
- Pull the closest match from the Forensic Case Study Library and read what came next
License and delivery
- Single user, lifetime access
- Delivered within 24 hours via download link emailed to the order address
- Free content updates for 12 months
- 30-day money-back guarantee, no questions asked
Why this exists
Most analyst earnings-quality work is invented from scratch each quarter. The models live in one analyst's head, the red flags live in another's spreadsheet, and the case studies sit in textbooks nobody opens. This kit puts the working models, scoring matrices and historical pattern library in one place so you can run an earnings quality assessment in an hour, not a week.