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.
Air Methods's Sloan Ratio for the quarter that ended in Dec. 2016 was 11.09%.
As of Dec. 2016, Air Methods has a Sloan Ratio of 11.09%, indicating there is a warning stage of accrual build up.
Air Methods Sloan Ratio % Historical Data
The historical data trend for Air Methods'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 Air Methods's Sloan Ratio %
For the Airports & Air Services subindustry, Air Methods'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.
Air Methods's Sloan Ratio % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Air Methods's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Air Methods's Sloan Ratio % falls into.
Air Methods 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.
Air Methods's Sloan Ratio for the fiscal year that ended in Dec. 2016 is calculated as
Air Methods's Net Income for the trailing twelve months (TTM) ended in Dec. 2016 was 20.453 (Mar. 2016 ) + 26.982 (Jun. 2016 ) + 30.614 (Sep. 2016 ) + 19.856 (Dec. 2016 ) = $98 Mil.
Air Methods's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2016 was 42.37 (Mar. 2016 ) + 49.969 (Jun. 2016 ) + 80.964 (Sep. 2016 ) + 53.785 (Dec. 2016 ) = $227 Mil.
Air Methods's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2016 was -260.119 (Mar. 2016 ) + -34.957 (Jun. 2016 ) + -14.576 (Sep. 2016 ) + -18.007 (Dec. 2016 ) = $-328 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.
Air Methods (NAS:AIRM) 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. 2016, Air Methods has a Sloan Ratio of 11.09%, indicating there is a warning stage of accrual build up.
Air Methods Sloan Ratio % Related Terms
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Air Methods Corp is a Delaware corporation, was established in Colorado in 1982. The Company provides air medical emergency transport services and systems throughout the United States of America. It designs, manufactures, and installs medical aircraft interiors and other aerospace and medical transport products. The Company also provides tourism operations in and around the Grand Canyon and Hawaiian Islands. The Company's operating segments include Air Medical Services, Tourism Division and United Rotorcraft. Air Medical Services provides air medical transportation services to the general population as an independent service and to hospitals or other institutions under exclusive operating agreements. The division operates 380 helicopters and 26 fixed wing aircraft under both Instrument Flight Rules and Visual Flight Rules. Tourism Division provides helicopter tours and charter flights, mainly focusing on Grand Canyon and Hawaiian Island tours. The division operates 48 helicopters under two Part 135 Air Carrier Certificates. United Rotorcraft Division designs, manufactures, and installs aircraft medical interiors and other aerospace and medical transport products for domestic and international customers. The Company maintains patents covering several products, including the Litter Lift System used in the U.S. Army's HH-60M helicopter and Medical Evacuation Vehicle, and the Articulating Patient Loading System and Modular Equipment Frame developed as part of the modular interior concept. The Company competes with several national and regional air medical transportation providers for contracts with hospitals and other healthcare institutions. It also competes with larger aerial tourism operators in the Grand Canyon market and a number of smaller operators in both the Grand Canyon and Hawaiian Island markets. The Company is subject to the Federal Aviation Act of 1958. All of its flight and maintenance operations-including equipment, ground facilities, dispatch, communications, flight training personnel and other matters affecting air safety are regulated and actively supervised by the U.S. Department of Transportation through the FAA. It is also subject to laws, regulations, and standards relating to corporate governance and public disclosure, including the Sarbanes-Oxley Act of 2002, Dodd-Frank Wall Street Reform and Consumer Protection Act, Securities and Exchange Commission (SEC) regulations, NASDAQ Stock Market rules, and other federal and state securities laws.
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