compare Honda and Toyota earning quality. ( low or high quality earning)
there is no generally accepted defines the of earnings quality or the factors that constitute a high-or low-earnings in a way that reflect the analyst’s analytical objective and highlights those earnings characteristic that are relevant to this objective.
high-quality earnings: (1)analyze earnings that are domestic in character(2) analyze earnings that are understandable

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low-quality earnings: (1) analyze earnings that are primarily off-share(2) analyze earnings that are accompanied by pages of notes that can only be understood by someone with a joint PHD. in accounting and old English.

analyze total and change in earnings per share by production asset quality, user’s objectives

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