Hi everyone, I don’t have my textbooks with me, so I’m hoping someone can help me. I’m looking for the both formulas to “earnings quality”. It’s in the FSA section - under accruals. Just need it for my job. Thanks much.
accruals(Avg) = [NOA(BGN) + NOA(BGN)]/2 1. accruals(BS) = NOA(END) - NOA(BGN) accruals(ratioBS) = accruals(BS)/accruals(Avg) 2. accruals(CF) = NI - CFO - CFI accruals(ratioCF) = accruals(CF)/accruals(Avg)
Thanks. You’re awesome!
and NOA itself = Operating Assets - Operating Liabilities Operating Assets = Total Assets - Cash - Marketable Securities - Cash Equivalents Operating Liabilites = Total Liabilities - Long Term Debt - Short Term Debt + 1 small correction accruals(Avg) = [NOA(BGN) + NOA(BGN)]/2 should instead read as accruals(Avg) = [NOA(BGN) + NOA(END)]/2