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.
As of Dec. 2023, Steel Partners Holdings LP has a Sloan Ratio of 6.81%, indicating the company is in the safe zone and there is no funny business with accruals.
Steel Partners Holdings LP 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 Steel Partners Holdings LP's Sloan Ratio %
For the Conglomerates subindustry, Steel Partners Holdings LP'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.
Steel Partners Holdings LP's Sloan Ratio % Distribution in the Conglomerates Industry
For the Conglomerates industry and Industrials sector, Steel Partners Holdings LP's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Steel Partners Holdings LP's Sloan Ratio % falls into.
Steel Partners Holdings LP 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.
Steel Partners Holdings LP's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 24.846 (Mar. 2023 ) + 59.15 (Jun. 2023 ) + 25.572 (Sep. 2023 ) + 41.261 (Dec. 2023 ) = $151 Mil.
Steel Partners Holdings LP's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -48.248 (Mar. 2023 ) + -6.263 (Jun. 2023 ) + 66.186 (Sep. 2023 ) + 9.547 (Dec. 2023 ) = $21 Mil.
Steel Partners Holdings LP's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -153.963 (Mar. 2023 ) + 10.061 (Jun. 2023 ) + -24.79 (Sep. 2023 ) + 26.49 (Dec. 2023 ) = $-142 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.
Steel Partners Holdings LP (NYSE:SPLP) 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, Steel Partners Holdings LP has a Sloan Ratio of 6.81%, indicating the company is in the safe zone and there is no funny business with accruals.
Steel Partners Holdings LP Sloan Ratio % Related Terms
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Steel Partners Holdings LP (Steel Partners Holdings LP) Business Description
Steel Partners Holdings LP operates in industrial products, energy, defense, supply chain management and logistics, banking, and youth sports industries. It operates in various segments including the Diversified Industrial segment comprised of manufacturers of engineered niche industrial products, including joining materials, tubing, building materials, performance materials, electrical products, cutting replacement products and services, and metallized films and packaging businesses; the Energy segment provides drilling and production services to the oil and gas industry and owns a youth sports business; the Financial Services segment consists of the operations of WebBank, a Utah chartered industrial bank, which engages in a full range of banking activities.
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