OPEN-SOURCE SCRIPT
AuditLens - Profit Quality Analyzer
📊 AuditLens - Profit Quality Analyzer
Ever wonder if a company's profits are real or just accounting tricks?
This indicator helps you spot potential earnings manipulation by analyzing the gap between reported profits and actual cash generation.
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🔍 WHAT IT DOES
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Calculates the "Divergence Ratio":
(Net Income - Operating Cash Flow) / Total Assets
• Positive divergence = Profits NOT backed by cash (risky)
• Negative divergence = Cash exceeds profits (healthy "cash cow")
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🚦 SIGNAL GUIDE
━━━━━━━━━━━━━━━━━━━━━━━━
🔴 RED FLAG (>10%): High risk - possible aggressive revenue recognition
🟠 ORANGE: Divergence trending up for 3+ quarters
🟡 YELLOW: Divergence trending up for 2+ quarters
🟢 GREEN (<-5%): "Cash Cow" - strong cash generation
✅ HEALTHY (0 to -5%): Normal profit quality
━━━━━━━━━━━━━━━━━━━━━━━━
📈 HOW TO USE
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1. Add to any stock chart
2. Check the summary table (top right)
3. Look for RED FLAGS before buying
4. Prefer stocks with negative divergence (cash cows)
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⚠️ FAMOUS EXAMPLES
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• Enron (2001): Showed profits but burned cash → Bankruptcy
• Wirecard (2020): €1.9B "cash" that didn't exist → Fraud
• Luckin Coffee (2020): Fake revenue, no cash backing → Delisted
This indicator would have flagged all of them.
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🔗 FULL VERSION
━━━━━━━━━━━━━━━━━━━━━━━━
Want more detailed analysis with:
• 6 advanced audit rules
• Historical trend analysis
• Receivables & Inventory checks
• Detailed reports for any stock
👉 Try the full version FREE: auditlens-check.netlify.app
━━━━━━━━━━━━━━━━━━━━━━━━
📚 THE LOGIC
━━━━━━━━━━━━━━━━━━━━━━━━
Based on forensic accounting principles:
- Companies can manipulate earnings (accruals)
- But cash flow is harder to fake
- Big gap between the two = potential red flag
This is NOT financial advice. Always do your own research.
━━━━━━━━━━━━━━━━━━━━━━━━
Built by AuditLens team 🔍
Questions? DM or comment below.
Ever wonder if a company's profits are real or just accounting tricks?
This indicator helps you spot potential earnings manipulation by analyzing the gap between reported profits and actual cash generation.
━━━━━━━━━━━━━━━━━━━━━━━━
🔍 WHAT IT DOES
━━━━━━━━━━━━━━━━━━━━━━━━
Calculates the "Divergence Ratio":
(Net Income - Operating Cash Flow) / Total Assets
• Positive divergence = Profits NOT backed by cash (risky)
• Negative divergence = Cash exceeds profits (healthy "cash cow")
━━━━━━━━━━━━━━━━━━━━━━━━
🚦 SIGNAL GUIDE
━━━━━━━━━━━━━━━━━━━━━━━━
🔴 RED FLAG (>10%): High risk - possible aggressive revenue recognition
🟠 ORANGE: Divergence trending up for 3+ quarters
🟡 YELLOW: Divergence trending up for 2+ quarters
🟢 GREEN (<-5%): "Cash Cow" - strong cash generation
✅ HEALTHY (0 to -5%): Normal profit quality
━━━━━━━━━━━━━━━━━━━━━━━━
📈 HOW TO USE
━━━━━━━━━━━━━━━━━━━━━━━━
1. Add to any stock chart
2. Check the summary table (top right)
3. Look for RED FLAGS before buying
4. Prefer stocks with negative divergence (cash cows)
━━━━━━━━━━━━━━━━━━━━━━━━
⚠️ FAMOUS EXAMPLES
━━━━━━━━━━━━━━━━━━━━━━━━
• Enron (2001): Showed profits but burned cash → Bankruptcy
• Wirecard (2020): €1.9B "cash" that didn't exist → Fraud
• Luckin Coffee (2020): Fake revenue, no cash backing → Delisted
This indicator would have flagged all of them.
━━━━━━━━━━━━━━━━━━━━━━━━
🔗 FULL VERSION
━━━━━━━━━━━━━━━━━━━━━━━━
Want more detailed analysis with:
• 6 advanced audit rules
• Historical trend analysis
• Receivables & Inventory checks
• Detailed reports for any stock
👉 Try the full version FREE: auditlens-check.netlify.app
━━━━━━━━━━━━━━━━━━━━━━━━
📚 THE LOGIC
━━━━━━━━━━━━━━━━━━━━━━━━
Based on forensic accounting principles:
- Companies can manipulate earnings (accruals)
- But cash flow is harder to fake
- Big gap between the two = potential red flag
This is NOT financial advice. Always do your own research.
━━━━━━━━━━━━━━━━━━━━━━━━
Built by AuditLens team 🔍
Questions? DM or comment below.
Skrip sumber terbuka
Dalam semangat TradingView sebenar, pencipta skrip ini telah menjadikannya sumber terbuka, jadi pedagang boleh menilai dan mengesahkan kefungsiannya. Terima kasih kepada penulis! Walaupuan anda boleh menggunakan secara percuma, ingat bahawa penerbitan semula kod ini tertakluk kepada Peraturan Dalaman.
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.
Skrip sumber terbuka
Dalam semangat TradingView sebenar, pencipta skrip ini telah menjadikannya sumber terbuka, jadi pedagang boleh menilai dan mengesahkan kefungsiannya. Terima kasih kepada penulis! Walaupuan anda boleh menggunakan secara percuma, ingat bahawa penerbitan semula kod ini tertakluk kepada Peraturan Dalaman.
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.