Earnings quality
Concept in accounting / From Wikipedia, the free encyclopedia
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Earnings quality, also known as quality of earnings (QoE), in accounting, refers to the ability of reported earnings (net profit/income) to predict a company's future earnings.[1] It is an assessment criterion for how "repeatable, controllable and bankable"[citation needed] a firm's earnings are, amongst other factors, and has variously been defined as the degree to which earnings reflect underlying economic effects, are better estimates of cash flows, are conservative, or are predictable.[citation needed]