Big firm news today, $IDT issued its detailed performance in the past year. A company may report high earnings but actually have low cash flows. This difference is called "accruals", which represents a firm’s estimation of future financial benefits and obligations. The estimation, however, may have errors. Some companies can even use accruals to manipulate their earnings. As a result, accruals may not be fully realized, leading to high accruals associating with low subsequent cash flows. This suggests that a firm is likely to perform poorly in the coming years as compared to firms that have the same reported earnings but lower accruals. To quantify $IDT ’s accruals and earnings quality, see the image below for details.