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.
Masonite International's Sloan Ratio for the quarter that ended in Dec. 2023 was 16.55%.
As of Dec. 2023, Masonite International has a Sloan Ratio of 16.55%, indicating there is a warning stage of accrual build up.
Masonite International Sloan Ratio % Historical Data
* 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 Masonite International's Sloan Ratio %
For the Building Products & Equipment subindustry, Masonite International'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.
Masonite International's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Masonite International's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Masonite International's Sloan Ratio % falls into.
Masonite International 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.
Masonite International's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Masonite International's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 38.491 (Mar. 2023 ) + 48.245 (Jun. 2023 ) + 41.486 (Sep. 2023 ) + -9.995 (Dec. 2023 ) = $118 Mil.
Masonite International's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 56.347 (Mar. 2023 ) + 161.465 (Jun. 2023 ) + 92.599 (Sep. 2023 ) + 97.319 (Dec. 2023 ) = $408 Mil.
Masonite International's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -372.952 (Mar. 2023 ) + -31.344 (Jun. 2023 ) + -28.592 (Sep. 2023 ) + -300.944 (Dec. 2023 ) = $-734 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.
Masonite International (NYSE:DOOR) 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 Dec. 2023, Masonite International has a Sloan Ratio of 16.55%, indicating there is a warning stage of accrual build up.
Masonite International Sloan Ratio % Related Terms
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Masonite International (Masonite International) Business Description
Masonite International Corp is engaged in designing, manufacturing, marketing and distributing interior and exterior doors for the new construction and repair, renovation and remodeling sectors of the residential and non-residential building construction markets. Its product categories include interior molded residential doors, interior stile and rail residential doors, exterior fibreglass residential doors, exterior steel residential doors, interior architectural wood doors, wood veneers and molded door facings and door core. The company operates its manufacturing and distribution facilities in seven countries in North America, Europe, South America and Asia.
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