Earnings quality
AccountingHow reliably reported profit converts into cash and persists into future periods.
In plain terms
Cumulative operating cash flow divided by cumulative profit over five years is the quick version. Above 0.8 is healthy.
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Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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