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The key question is "Is this real sustainable earnings?" (high quality) or is it earnings due to some accounting quirk or one-time event which would not be expected to continue in future periods? Is it even honest reporting or were the books adjusted to make management look good and achieve desired bonuses?
What else can I help you with?
What are 2 factors that can affect earnings for an computer tech?
rate of input and quality of output
What factors might influence a firm's price-earnings ratio?
The price earnings ratio is influenced by: -the earnings and sales growth of the firms -risk -debt-equity structure of the firm -dividend policy -quality of management -a number of other factors
Two factors that could affect earnings for a florist?
Late delivery and low quality affects the earning for a florist
What is the phrase with no agreement on meaning which implies to most analyst that earnings quality increase with the likelihood of recurrence?
The phrase you’re referring to is likely "earnings sustainability" or "recurring earnings." Analysts generally interpret it as the quality of earnings improves when there is a higher likelihood that those earnings will continue in the future. However, the exact definition can vary, leading to different interpretations among analysts regarding what constitutes high-quality earnings.
Retained earnings has a cost associated with it because?
There is an opportunity cost associated with stockholder funds
How is the quality of a stock determined?
The quality of a stock is determined by analyzing factors such as the company's financial performance, management team, industry trends, and overall market conditions. Investors look at metrics like earnings growth, revenue growth, profitability, and competitive position to assess the quality of a stock.
What are the four factors of PE?
Expected growth of earnings, expected stability of earnings, expected inflation, and yields of competing investments.
How is quality control associated with a products dimensions?
How is quality associated with a product's dimensions.
What is earnings predictability?
Earnings predictability refers to the extent to which a company's future earnings can be anticipated based on past performance and various influencing factors. High earnings predictability implies that a company's earnings are stable and consistent, making it easier for analysts and investors to forecast future earnings. Conversely, low earnings predictability indicates greater volatility and uncertainty, which can complicate valuation and investment decisions. Factors influencing earnings predictability include industry characteristics, company management, economic conditions, and accounting practices.
Which factors would explain an increase in retained earnings?
INFLATION
What are 2 factors that could affect earnings for an architect?
poooping and peeing
What is meant by quality of earnings?
In recent years, I've read earnings announcements from companies and I've come to doubt the transparency of even the veracity of what I've been reading. After digging into the financial statements, I've found what I consider some dubious earnings reporting. Financial analysts are increasingly concerned about earnings reporting and have reached certain conclusions.* The measure of quality is the degree to which earnings are generated from internally developed initiatives, as opposed to external forces.* If a company has increased earnings year over year from improved cost efficiencies or sales generated from a marketing campaign, that company has a high quality of earnings.* If a company's earnings are attributed to outside sources such increasing commodity prices, this is seen as low quality of earnings.* It has also come to mean the degree to which management's choices of accounting estimates can affect reported income.* Some analysts question whether some firms engage in "earnings management."
