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.
Consolidated Water Co's Sloan Ratio for the quarter that ended in Mar. 2024 was 14.06%.
As of Mar. 2024, Consolidated Water Co has a Sloan Ratio of 14.06%, indicating there is a warning stage of accrual build up.
Consolidated Water Co Sloan Ratio % Historical Data
The historical data trend for Consolidated Water Co'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 Consolidated Water Co's Sloan Ratio %
For the Utilities - Regulated Water subindustry, Consolidated Water Co'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.
Consolidated Water Co's Sloan Ratio % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Consolidated Water Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Consolidated Water Co's Sloan Ratio % falls into.
Consolidated Water Co 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.
Consolidated Water Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Consolidated Water Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 6.76 (Jun. 2023 ) + 8.063 (Sep. 2023 ) + 9.026 (Dec. 2023 ) + 5.956 (Mar. 2024 ) = €29.8 Mil.
Consolidated Water Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -0.344 (Jun. 2023 ) + 3.206 (Sep. 2023 ) + -0.39 (Dec. 2023 ) + 5.474 (Mar. 2024 ) = €7.9 Mil.
Consolidated Water Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -1.59 (Jun. 2023 ) + -0.95 (Sep. 2023 ) + -3.984 (Dec. 2023 ) + -0.489 (Mar. 2024 ) = €-7.0 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.
Consolidated Water Co (FRA:CW2) 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 Mar. 2024, Consolidated Water Co has a Sloan Ratio of 14.06%, indicating there is a warning stage of accrual build up.
Consolidated Water Co Sloan Ratio % Related Terms
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Consolidated Water Co (FRA:CW2) Business Description
Consolidated Water Co Ltd is a water utility company. It develops and operates seawater desalination plants and water distribution systems. The company's business segments are; The retail segment operates the water utility for the Seven Mile Beach and West Bay areas of Grand Cayman Island, The bulk segment supplies potable water to government utilities in Grand Cayman and The Bahamas under long-term contracts, The services segment designs, constructs and sells water infrastructure and provides management and operating services to third parties, and The manufacturing segment manufactures and services a wide range of custom and specialized water-related products applicable to commercial, municipal and industrial water production, supply and treatment.
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