Tag Archives: balance sheet accruals

Measuring Earnings Quality – Balance Sheet Accruals Ratio Versus Earnings Variability

The balance sheet accruals ratio (BSA)[1] is widely used in the investment community to measure earnings quality.[2] This is in part due to accruals being perceived as transient and subject to considerable estimations, manipulations, and potential misrepresentations.[3] BSA is one of the three quality metrics used in the S&P Quality Index Series. We define BSA Read more […]