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.
Magellan Aerospace's Sloan Ratio for the quarter that ended in Mar. 2024 was 1.75%.
As of Mar. 2024, Magellan Aerospace has a Sloan Ratio of 1.75%, indicating the company is in the safe zone and there is no funny business with accruals.
Magellan Aerospace Sloan Ratio % Historical Data
The historical data trend for Magellan Aerospace'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 Magellan Aerospace's Sloan Ratio %
For the Aerospace & Defense subindustry, Magellan Aerospace'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.
Magellan Aerospace's Sloan Ratio % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Magellan Aerospace's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Magellan Aerospace's Sloan Ratio % falls into.
Magellan Aerospace 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.
Magellan Aerospace's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Magellan Aerospace's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 1.49 (Jun. 2023 ) + 2.715 (Sep. 2023 ) + -0.198 (Dec. 2023 ) + 4.662 (Mar. 2024 ) = $8.7 Mil.
Magellan Aerospace's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -14.246 (Jun. 2023 ) + 0.908 (Sep. 2023 ) + 13.988 (Dec. 2023 ) + 14.648 (Mar. 2024 ) = $15.3 Mil.
Magellan Aerospace's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -1.97 (Jun. 2023 ) + -3.997 (Sep. 2023 ) + -8.653 (Dec. 2023 ) + -5.561 (Mar. 2024 ) = $-20.2 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.
Magellan Aerospace (OTCPK:MALJF) 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, Magellan Aerospace has a Sloan Ratio of 1.75%, indicating the company is in the safe zone and there is no funny business with accruals.
Magellan Aerospace Sloan Ratio % Related Terms
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Magellan Aerospace (Magellan Aerospace) Business Description
Magellan Aerospace Corp supplies components to the aerospace industry. It has two major product groups: aerostructures and aeroengines. Its engines and parts may be applied to new aircraft, or as replacement parts to existing platforms. The company also provides aftermarket support by conducting specific repairs and other maintenance services. It serves both commercial (approximately three-fourths of total sales) and defense markets. Additionally, parts and equipment may be provided for power generation projects, but sales do not constitute a material amount. The three geographic regions to which Magellan primarily sells are Canada, the United States, and Europe.
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