CFRA, the leading global provider of independent
forensic accounting research and due diligence services, today
announced the launch of its new proprietary earnings quality model in
Europe. With it, clients can generate rankings of earnings quality
risk for over 3,300 public companies in the UK and Continental Europe,
based on key accounts and metrics used by CFRA analysts in the early
stages of their forensic accounting research process.
The QuickScore earnings quality model is the first of its kind to
be made available to the institutional investment community in Europe,
and represents another strong enhancement to CFRA's European offering
- which now includes a complete end-to-end forensic accounting
research suite. In addition to the QuickScore model, this suite
includes: in-depth research reports, unlimited access to CFRA's
analyst team, a robust online database of company notes,
accounting-oriented industry analyses, topical educational research,
on-site roundtable presentations, and proprietary conference calls.
The proprietary model, based on thoroughly backtested methodology,
provides a quantitative ranking (by decile) measuring the more
discretionary, non-cash component of earnings growth. This scoring is
proven to help identify companies with earnings quality risk, which
are more likely to experience earnings disappointments, restatements,
regulatory actions, and shareholder lawsuits. To be used in an
analytical, screening or portfolio monitoring context, QuickScore
identifies companies at both ends of the spectrum - those more likely
to have overstated as well as understated earnings potential. This
tool also helps to identify companies that warrant further in-depth
review by CFRA's highly experienced team of specialized analysts,
comprised of chartered accountants, CFA charterholders, and MBAs,
organized by five industry verticals.
"The convergence of financial reporting standards under IFRS
provides an exciting opportunity to apply the quantitative methodology
that has been part of CFRA's research process for over 12 years,"
comments Marc Siegel, the firm's Director of Research. "QuickScore
serves as a great compliment to our in-depth published research, as it
provides an earnings quality snapshot for thousands of firms across
Europe."
In addition to online access to the database, which contains over
8,300 companies globally, clients also can download the QuickScore
Diagnostic, which provides a disaggregated explanation of the earnings
quality score, as well as a concise overview of key earnings quality
ratios and metrics for further analysis. The three-page report
presents a crisp, high-impact summary of the information most critical
to assessing the reliability of reported financial results.
For more information on the QuickScore earnings quality model for
Europe, please contact sales@cfraonline.com.
About CFRA
Founded in 1994 by Dr. Howard Schilit, CFRA is the independent
leader in forensic accounting research and due diligence services for
a global clientele that includes the most prestigious institutional
investment, financial services, insurance and professional services
firms. Through a rigorous and proprietary research process, CFRA's
team of analysts - including dedicated pan-European and Asian teams -
assess the quality and sustainability of reported financial results at
over 8,000 companies globally across five industry sectors. CFRA's
end-to-end accounting research suite includes: a fully back-tested
earnings quality database for over 8,000 North American and
pan-European companies, in-depth company analysis, industry analysis,
educational analysis and services, and a reference library of
accounting "red flags" in 62 industries (IRAPs). CFRA prides itself on
being far more than a publisher of research - working with every
client to tailor its service offers to best meet that client's unique
needs - and encouraging unlimited contact with its team of analysts.
CFRA is headquartered outside of Washington, D.C. with offices in the
New York metro area, London, Boston and Chicago. CFRA is backed by TA
Associates.
