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Earnings quality checker
Paste a company's statements and one-off table. Get accounting choices that lift profit, their size, and a clean, adjusted or avoid call.
Earnings quality checker is a free AI skill for the job "Handle money and investing". Give the instructions to an AI assistant that supports the required files and tools, then review its output.
Free · No account · Made by AI Blocks · Level: advanced · Thinking: high
What it does
Profit is partly a result and partly a set of choices. A big write-down this year makes next year look better. A cost spread over five years does not hit this year. A lower depreciation charge lifts profit with no change in the business. Most of these choices are small and honest. A few add up to a picture that was arranged. This skill runs six checks and puts a size on each finding as a share of reported profit. It restates earnings and reads the findings as a pattern. If the pattern shows a management shaping its figures, it says avoid, because a number cannot be put on dishonesty. It is a method, not financial advice, and never says buy or sell.
You give it
- The table and ordinary earnings from "One-off items separator", or several years of income statements
- Balance sheets, cash flow statements and notes for the same years (optional)
- Source text (optional)
You get
- Each finding with year, amount, direction and share of reported profit
- Reported and restated earnings by year
- A read of the pattern
- A clean, adjusted or avoid call
- Questions to put to the company
Use it when
- A company's profit rises while its cash does not.
- A big write-down was followed by a very good year.
- You are about to rely on a profit figure to value a business.
How to use it
- Start a chat with the skill. Open it if you added it to your AI, or copy it and paste it in.
- Paste the one-off table, then the balance sheets, cash flow and notes if you have them.
- Say what you are using the profit figure for.
- Read the call and the pattern before the individual findings.
- Take the restated earnings to "Earnings record reliability checker".
Workflows that use it
- Screen stocks with a defensive investor's seven tests
- Find a company's real earning power and its tricks