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.
SPX Technologies's Sloan Ratio for the quarter that ended in Mar. 2024 was 26.59%.
As of Mar. 2024, SPX Technologies has a Sloan Ratio of 26.59%, indicating there is a warning stage of accrual build up.
SPX Technologies Sloan Ratio % Historical Data
The historical data trend for SPX Technologies'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 SPX Technologies's Sloan Ratio %
For the Building Products & Equipment subindustry, SPX Technologies'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.
SPX Technologies's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, SPX Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where SPX Technologies's Sloan Ratio % falls into.
SPX Technologies 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.
SPX Technologies's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
SPX Technologies's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 33.228 (Jun. 2023 ) + -19.115 (Sep. 2023 ) + 28.885 (Dec. 2023 ) + 45.08 (Mar. 2024 ) = €88 Mil.
SPX Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 66.456 (Jun. 2023 ) + 13.493 (Sep. 2023 ) + 116 (Dec. 2023 ) + 9.66 (Mar. 2024 ) = €206 Mil.
SPX Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -508.481 (Jun. 2023 ) + -5.997 (Sep. 2023 ) + -8.253 (Dec. 2023 ) + -279.588 (Mar. 2024 ) = €-802 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.
SPX Technologies (FRA:SPW0) 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, SPX Technologies has a Sloan Ratio of 26.59%, indicating there is a warning stage of accrual build up.
SPX Technologies Sloan Ratio % Related Terms
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SPX Technologies Inc supplies engineered heating, ventilation, and air conditioning, or HVAC, products, as well as detection and measurement technologies and power equipment. The company operates through three segments. The HVAC segment designs, manufactures, installs, and services cooling products, as well as heating and ventilation products. The detection and measurement technologies segment designs, manufactures, and installs underground pipe and cable locators and inspection equipment, bus-fare collection systems, and others. The Engineered Solutions segment engineers, designs, manufactures, installs and services transformers for the power transmission and distribution market. The company generates almost all of its revenue from American domestic market.
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