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.
Hawkins's Sloan Ratio for the quarter that ended in Dec. 2023 was 5.95%.
As of Dec. 2023, Hawkins has a Sloan Ratio of 5.95%, indicating the company is in the safe zone and there is no funny business with accruals.
Hawkins Sloan Ratio % Historical Data
The historical data trend for Hawkins'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.
For the Specialty Chemicals subindustry, Hawkins'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.
Hawkins's Sloan Ratio % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Hawkins's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Hawkins's Sloan Ratio % falls into.
Hawkins 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.
Hawkins's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
Hawkins's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 11.613 (Mar. 2023 ) + 23.43 (Jun. 2023 ) + 23.216 (Sep. 2023 ) + 14.885 (Dec. 2023 ) = $73.1 Mil.
Hawkins's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 32.859 (Mar. 2023 ) + 34.866 (Jun. 2023 ) + 57.764 (Sep. 2023 ) + 24.98 (Dec. 2023 ) = $150.5 Mil.
Hawkins's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -9.275 (Mar. 2023 ) + -7.829 (Jun. 2023 ) + -12.113 (Sep. 2023 ) + -86.438 (Dec. 2023 ) = $-115.7 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.
Hawkins (NAS:HWKN) 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, Hawkins has a Sloan Ratio of 5.95%, indicating the company is in the safe zone and there is no funny business with accruals.
Hawkins Sloan Ratio % Related Terms
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Hawkins Inc manufactures and sells a variety of chemicals and ingredients. The firm organizes itself into three segments based on the product type. The industrial segment, which generates the majority of revenue, sells private label bleach, caustic soda, sulfuric acid, hydrochloric acid, phosphoric acid, potassium hydroxide, and aqua ammonia. The water treatment segment sells chemicals and equipment used to treat potable water, municipal and industrial wastewater, industrial process water, and non-residential swimming pool water. The health and nutrition segment sells ingredients to food, beverage, personal care, and dietary supplement producers. The vast majority of revenue comes from the United States.
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