skills/bigdata-earnings-quality-screen/assets/report-template.md

# Earnings quality screen — report template

Follow this structure. Keep the section order. Every ratio is shown across multiple periods, never as a single snapshot. Where an input is unavailable, write "Not available" and say what it prevents. Add inline citations `[1]`, `[2]` immediately after claims, hyperlinked to the document URL.

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```markdown
# Earnings Quality Screen: [Company Name] ([Ticker])
Periods covered: [e.g. FY2023-FY2025 + latest 4 quarters]
Report Date: [Date]

## Verdict
**Overall quality: [High / Adequate / Questionable / Poor]**

[2-3 sentences: the specific evidence behind the grade. Lead with the strongest signal, not a summary of everything checked.]

| Flag | Severity | Evidence | What would clear it |
|------|----------|----------|---------------------|
| [Flag 1] | High / Med / Low | | |
| [Flag 2] | | | |

## Cash Conversion

| Period | Net income | OCF | FCF | OCF/NI | FCF/NI |
|--------|-----------|-----|-----|--------|--------|
| [FY-2] | | | | | |
| [FY-1] | | | | | |
| [FY] | | | | | |
| [LTM] | | | | | |

**Read:** [Is the trend improving, stable, or diverging? Healthy OCF/NI is typically >0.8 sustained; <0.6 or a widening gap warrants investigation.]

## Accruals

| Measure | [FY-2] | [FY-1] | [FY] | Trend |
|---------|--------|--------|------|-------|
| Balance-sheet accrual ratio | | | | |
| Cash-flow accrual ratio | | | | |

**Inputs shown:** [State the net operating assets / total assets figures used]

**Read:** [Are earnings increasingly composed of estimates rather than cash?]

## Working Capital Signals

| Metric | [FY-2] | [FY-1] | [FY] | vs revenue growth | Read |
|--------|--------|--------|------|-------------------|------|
| DSO (days) | | | | | |
| DIO / inventory days | | | | | |
| DPO (days) | | | | | |
| Cash conversion cycle | | | | | |

## Revenue Recognition and Capitalization

| Area | Finding | Source | Concern level |
|------|---------|--------|---------------|
| Recognition policy or timing changes | | | |
| Capitalized costs vs peer practice | | | |
| Related-party revenue | | | |
| Restatements / auditor changes / material weakness | | | |
| Unusual "other income" | | | |

## GAAP vs Non-GAAP

| Period | GAAP EPS | Non-GAAP EPS | Gap | Gap as % of non-GAAP |
|--------|----------|--------------|-----|----------------------|
| [FY-2] | | | | |
| [FY-1] | | | | |
| [FY] | | | | |

**Add-back composition:** [What is being excluded — stock comp, restructuring, amortization, impairments — and whether "one-time" items recur year after year]

## Beneish M-Score (optional — include when several signals are flashing)

| Input | Value | Note |
|-------|-------|------|
| DSRI (days sales in receivables index) | | |
| GMI (gross margin index) | | |
| AQI (asset quality index) | | |
| SGI (sales growth index) | | |
| DEPI (depreciation index) | | |
| SGAI (SG&A index) | | |
| LVGI (leverage index) | | |
| TATA (total accruals to total assets) | | |
| **M-Score** | | [Above -1.78 is the conventional flag threshold] |

**Data gaps:** [Any inputs unavailable, and what that does to the score's reliability]

## What to Watch Next Print
1. [Specific line item or ratio, and what would confirm or clear the concern]
2. [Same]
3. [Same]

## Sources
  ALWAYS include a "Sources" section listing ALL documents referenced with:
   - Reference number matching the inline superscript number
   - Source name and publication date (MMM DD, YYYY) hyperlinked to the URL

   **Example:**
   [1] (NVIDIA FY2026 10-K - Feb 26, 2026)[https://www.sec.gov/...]
   [2] (Benzinga - Nov 20, 2025)[https://www.benzinga.com/node/...]

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## Disclaimer

This output is for informational and research-assistance purposes only. It does **not** constitute investment, legal, tax, accounting, or other professional advice, and it is **not** a recommendation to buy, sell, or hold any security or instrument or to pursue any strategy. Information may be incomplete, estimated, delayed, or inaccurate. Past performance does not guarantee future results. Verify material facts independently and consult qualified advisors before making decisions.
```

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## Language rule

This deliverable is diagnostic. Write "the gap between reported earnings and operating cash flow widened for a third consecutive year", not "the company is manipulating earnings". State evidence and probability; never allege fraud.

## Footer rule

The **Powered by Bigdata.com** line and the **Disclaimer** block above are mandatory and must be reproduced **verbatim**, after the Sources section, in every user-facing deliverable.