Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Breeze-Eastern's Sloan Ratio for the quarter that ended in Sep. 2015 was 9.46%.
As of Sep. 2015, Breeze-Eastern has a Sloan Ratio of 9.46%, indicating the company is in the safe zone and there is no funny business with accruals.
Breeze-Eastern Sloan Ratio % Historical Data
The historical data trend for Breeze-Eastern's Sloan Ratio % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Breeze-Eastern's Sloan Ratio %
For the Aerospace & Defense subindustry, Breeze-Eastern's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Breeze-Eastern's Sloan Ratio % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Breeze-Eastern's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Breeze-Eastern's Sloan Ratio % falls into.
Breeze-Eastern Sloan Ratio % Calculation
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Breeze-Eastern's Sloan Ratio for the fiscal year that ended in Mar. 2015 is calculated as
Breeze-Eastern's Net Income for the trailing twelve months (TTM) ended in Sep. 2015 was 9.044 (Dec. 2014 ) + 5.385 (Mar. 2015 ) + 2.386 (Jun. 2015 ) + 2.923 (Sep. 2015 ) = $19.74 Mil.
Breeze-Eastern's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2015 was 2.981 (Dec. 2014 ) + 7.509 (Mar. 2015 ) + 1.177 (Jun. 2015 ) + -0.038 (Sep. 2015 ) = $11.63 Mil.
Breeze-Eastern's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2015 was -0.121 (Dec. 2014 ) + -0.439 (Mar. 2015 ) + -0.134 (Jun. 2015 ) + -0.645 (Sep. 2015 ) = $-1.34 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Breeze-Eastern (AMEX:BZC) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Sep. 2015, Breeze-Eastern has a Sloan Ratio of 9.46%, indicating the company is in the safe zone and there is no funny business with accruals.
Breeze-Eastern Sloan Ratio % Related Terms
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Breeze-Eastern (Breeze-Eastern) Business Description
Breeze-Eastern Corp a Delaware corporation was organized in 1962. The Company designs, develops, manufactures, sells and services sophisticated engineered mission equipment for specialty aerospace and defense applications. Its core business is aerospace and defense products. The Company develops helicopter hoist and winch systems, including systems for the current generation of Sikorsky H-60 Blackhawk and Naval Hawk, Bell-Boeing V-22 Osprey, Boeing CH-47 Chinook, Dolphin, Changhe Z-11, Agusta Westland A-W109, AW119 and AW139 helicopter. It also designs, markets, sells and services a line of hydraulic and electric aircraft cargo winch system. Its external cargo hook systems are original equipment on military medium and heavy lift helicopters. Its latest designs incorporate load sensing and display technology and automatic load release features. It also manufactures cargo and aircraft tie-downs which are included in this product line. It makes static-line retrieval and cargo winches for military cargo aircraft including the Boeing C-17, Alenia C-27J and CASA CN-235 and CASA C-295. Its weapons handling systems include weapons handling equipment for land-based rocket launchers and munitions hoists for loading missiles and other loads using electric power or exchangeable battery packs. It supplies this equipment for the United States, Japanese and European Multiple-Launch Rocket Systems (MLRS) and the United States High Mobility Artillery Rocket System (HIMARS). It performs overhaul, repair and maintenance services for all of its products. These services are performed at its Whippany, New Jersey facility. It also has licensed third-party vendors to perform these services.
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