Company Quality Exploration

Prompt

Create a pinned memory called "Quality Checks Workflow".

When I say "run my quality checks on [Company]", you should not just write a qualitative note. You should build whatever supporting model work and schedules are needed to judge business quality properly, then produce a concise written quality note.

The objective is to assess whether the company's earnings quality, cash generation, capital efficiency, and balance sheet discipline are real and durable.

The workflow should:
• Use my standing returns framework
• Apply a Mauboussin-style ROIC approach
• Calculate ROIC including goodwill, ROIC excluding goodwill, and incremental returns / ROIIC where possible
• Build a returns model and cash flow bridge if needed
• Analyse cash conversion in detail
• Review the major adjustments from reported profit to free cash flow
• Test whether exceptionals are genuinely one-off or effectively recurring
• Distinguish maintenance capex from growth capex where possible
• Review working capital discipline in detail
• Assess leverage, liquidity, and balance sheet quality
• Produce both the supporting model work and a concise written quality note

Preferred written output structure:
1. Overall quality view
2. Returns on capital
3. Cash conversion and earnings quality
4. Capex and reinvestment
5. Working capital discipline
6. Balance sheet quality
7. Key watchpoints

The note should make clear whether the quality profile is improving, deteriorating, or unchanged.

Use my pinned memory "my returns methodology but only use maboussin ROIC" as the standing framework.