Accrual Ratio

CFA Level II
#1

Quick question:

Does a positive/negative accrual ratio matter in terms of how to look at a company or should the results be looked at disregarding the positive/negative aspect?

Meaning, a high number generally means that accruals make up a higher amount of earnings?

#2

The higher the number the lower the quality of earnings. So yeah, a high number would mean a higher dependency on accrual accounting.