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What is a quality of earnings report? 5 лет назад


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What is a quality of earnings report?

A quality of earnings report is a detailed examination of the specific line items in a firm’s income statement or earnings report. It looks for items of “low quality,” says Wharton Professor Rick Lambert. That means components of earnings that are “one-time things” or “non-recurring things.” A quality of earnings report also tries to identify earnings that are coming from “accounting trickery” or “overly optimistic assumptions” that have little basis in reality. Lambert is academic director of Wharton Executive Education's Finance and Accounting for the Non-Financial Manager program (https://whr.tn/2Chep4W).

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