OPEN-SOURCE SCRIPT
AuditLens - Profit Quality Analyzer

๐ 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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๐ WHAT IT DOES
โโโโโโโโโโโโโโโโโโโโโโโโ
Calculates the "Divergence Ratio":
(Net Income - Operating Cash Flow) / Total Assets
โข Positive divergence = Profits NOT backed by cash (risky)
โข Negative divergence = Cash exceeds profits (healthy "cash cow")
โโโโโโโโโโโโโโโโโโโโโโโโ
๐ฆ SIGNAL GUIDE
โโโโโโโโโโโโโโโโโโโโโโโโ
๐ด RED FLAG (>10%): High risk - possible aggressive revenue recognition
๐ ORANGE: Divergence trending up for 3+ quarters
๐ก YELLOW: Divergence trending up for 2+ quarters
๐ข GREEN (<-5%): "Cash Cow" - strong cash generation
โ HEALTHY (0 to -5%): Normal profit quality
โโโโโโโโโโโโโโโโโโโโโโโโ
๐ HOW TO USE
โโโโโโโโโโโโโโโโโโโโโโโโ
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)
โโโโโโโโโโโโโโโโโโโโโโโโ
โ ๏ธ FAMOUS EXAMPLES
โโโโโโโโโโโโโโโโโโโโโโโโ
โข Enron (2001): Showed profits but burned cash โ Bankruptcy
โข Wirecard (2020): โฌ1.9B "cash" that didn't exist โ Fraud
โข Luckin Coffee (2020): Fake revenue, no cash backing โ Delisted
This indicator would have flagged all of them.
โโโโโโโโโโโโโโโโโโโโโโโโ
๐ FULL VERSION
โโโโโโโโโโโโโโโโโโโโโโโโ
Want more detailed analysis with:
โข 6 advanced audit rules
โข Historical trend analysis
โข Receivables & Inventory checks
โข Detailed reports for any stock
๐ Try the full version FREE: auditlens-check.netlify.app
โโโโโโโโโโโโโโโโโโโโโโโโ
๐ THE LOGIC
โโโโโโโโโโโโโโโโโโโโโโโโ
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.
โโโโโโโโโโโโโโโโโโโโโโโโ
Built by AuditLens team ๐
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.
โโโโโโโโโโโโโโโโโโโโโโโโ
๐ WHAT IT DOES
โโโโโโโโโโโโโโโโโโโโโโโโ
Calculates the "Divergence Ratio":
(Net Income - Operating Cash Flow) / Total Assets
โข Positive divergence = Profits NOT backed by cash (risky)
โข Negative divergence = Cash exceeds profits (healthy "cash cow")
โโโโโโโโโโโโโโโโโโโโโโโโ
๐ฆ SIGNAL GUIDE
โโโโโโโโโโโโโโโโโโโโโโโโ
๐ด RED FLAG (>10%): High risk - possible aggressive revenue recognition
๐ ORANGE: Divergence trending up for 3+ quarters
๐ก YELLOW: Divergence trending up for 2+ quarters
๐ข GREEN (<-5%): "Cash Cow" - strong cash generation
โ HEALTHY (0 to -5%): Normal profit quality
โโโโโโโโโโโโโโโโโโโโโโโโ
๐ HOW TO USE
โโโโโโโโโโโโโโโโโโโโโโโโ
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)
โโโโโโโโโโโโโโโโโโโโโโโโ
โ ๏ธ FAMOUS EXAMPLES
โโโโโโโโโโโโโโโโโโโโโโโโ
โข Enron (2001): Showed profits but burned cash โ Bankruptcy
โข Wirecard (2020): โฌ1.9B "cash" that didn't exist โ Fraud
โข Luckin Coffee (2020): Fake revenue, no cash backing โ Delisted
This indicator would have flagged all of them.
โโโโโโโโโโโโโโโโโโโโโโโโ
๐ FULL VERSION
โโโโโโโโโโโโโโโโโโโโโโโโ
Want more detailed analysis with:
โข 6 advanced audit rules
โข Historical trend analysis
โข Receivables & Inventory checks
โข Detailed reports for any stock
๐ Try the full version FREE: auditlens-check.netlify.app
โโโโโโโโโโโโโโโโโโโโโโโโ
๐ THE LOGIC
โโโโโโโโโโโโโโโโโโโโโโโโ
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.
โโโโโโโโโโโโโโโโโโโโโโโโ
Built by AuditLens team ๐
Questions? DM or comment below.
Skrip open-source
Dengan semangat TradingView yang sesungguhnya, pembuat skrip ini telah menjadikannya sebagai sumber terbuka, sehingga para trader dapat meninjau dan memverifikasi fungsinya. Salut untuk penulisnya! Meskipun Anda dapat menggunakannya secara gratis, perlu diingat bahwa penerbitan ulang kode ini tunduk pada Tata Tertib kami.
Pernyataan Penyangkalan
Informasi dan publikasi ini tidak dimaksudkan, dan bukan merupakan, saran atau rekomendasi keuangan, investasi, trading, atau jenis lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Ketentuan Penggunaan.
Skrip open-source
Dengan semangat TradingView yang sesungguhnya, pembuat skrip ini telah menjadikannya sebagai sumber terbuka, sehingga para trader dapat meninjau dan memverifikasi fungsinya. Salut untuk penulisnya! Meskipun Anda dapat menggunakannya secara gratis, perlu diingat bahwa penerbitan ulang kode ini tunduk pada Tata Tertib kami.
Pernyataan Penyangkalan
Informasi dan publikasi ini tidak dimaksudkan, dan bukan merupakan, saran atau rekomendasi keuangan, investasi, trading, atau jenis lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Ketentuan Penggunaan.