NQoES — Earnings Quality Diagnostic

Executive dashboard + driver diagnostics (0–100 normalised). Designed for repeatable quarterly refresh and board-ready export.
Demo mode • sample data • view-only
Inputs
Dashboard
Tracker
Overview – NQoES Methodology

Net Quality of Earnings Score (NQoES)

NQoES is a data-driven framework designed to assess the quality, sustainability, and predictability of a company’s earnings. It converts standard inputs into a normalised 0–100 score that can be tracked over time.

Assess earnings quality Identify value creation priorities Reduce diligence risk Strengthen the equity story

Design principle: transparent, explainable, and grounded in objective data rather than qualitative judgement.

How the NQoES score is calculated

1
Each input metric is mapped onto a predefined quality range and converted into a 0–100 score.
2
Metrics where lower values indicate higher quality (e.g. volatility, concentration) are inverted so higher scores always represent stronger earnings quality.
3
Related metrics are grouped into five core drivers and combined using fixed, transparent weights.
4
The five driver scores are aggregated into a single composite NQoES (0–100).

Scores are capped at 0 and 100 to prevent distortion from outliers and ensure comparability across companies and periods.

Inputs

Hover/tap ⓘ for definitions • Calculate saves a snapshot to Tracker (by Company + Date)

Earnings strength & trajectory iHow strong and credible the profit engine is — margin quality and growth direction, which drives valuation confidence.
Predictability & volatility iHow stable the revenue/earnings profile is — lower volatility typically supports higher multiples and better financing terms.
Cost structure & resilience iHow resilient earnings are under downside scenarios — mix of fixed vs variable costs and ability to flex costs quickly.
Cash conversion & capital intensity iHow well earnings convert to free cash flow — working capital drag and capex intensity affect de-leveraging and value creation.
Customer & revenue quality iHow durable the revenue base is — concentration, retention, recurring revenue and contract terms influence risk and multiple.