Hello, The Accrual ratio is calculated as Change in NOA / Average NOA. However, what is the correct conclusion. Lower is better of higher? Since I thought lower was better (Less accruals means more persistentency), however in the Schweser Quick sheet it says higher is better. Someone please shed some light on this!
higher ratio = lower earnings quality
yeah, quicksheet is wrong on this one
there is an erratum on quick sheet on the site.
… all good… solved my problem
cpk123 Wrote: ------------------------------------------------------- > there is an erratum on quick sheet on the site. Thanks, never saw it. On the upside: If we can spot errors in the material it at least shows we know our stuff! 
lower the number the better.
Lurky Wrote: ------------------------------------------------------- > cpk123 Wrote: > -------------------------------------------------- > ----- > > there is an erratum on quick sheet on the site. > > > Thanks, never saw it. > > On the upside: If we can spot errors in the > material it at least shows we know our stuff! Very true. I’ve been feeling good about catching stuff lately. Hope it lasts another 36 hours.