Array Technologies (Array Technologies) Sloan Ratio % : -4.56% (As of Dec. 2023)

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What is Array Technologies Sloan Ratio %?

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.

Array Technologies's Sloan Ratio for the quarter that ended in Dec. 2023 was -4.56%.

As of Dec. 2023, Array Technologies has a Sloan Ratio of -4.56%, indicating the company is in the safe zone and there is no funny business with accruals.

Array Technologies Sloan Ratio % Historical Data

The historical data trend for Array 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.

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Array Technologies Sloan Ratio % Chart

Array Technologies Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Sloan Ratio %

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-37.31

27.84

19.96

14.50

-4.56

Array Technologies Quarterly Data
	Dec18	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Sloan Ratio %	Get a 7-Day Free Trial															14.50	-9.41	-6.81	-6.24	-4.56

Competitive Comparison of Array Technologies's Sloan Ratio %

For the Solar subindustry, Array 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.

Array Technologies's Sloan Ratio % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Array Technologies's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Array Technologies's Sloan Ratio % falls into.

Array 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.

Array Technologies's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (A: Dec. 2023 )	-	Cash Flow from Operations (A: Dec. 2023 )
	-	Cash Flow from Investing (A: Dec. 2023 ))	/	Total Assets (A: Dec. 2023 )
	=	(137.24	-	231.955
	-	-16.821)	/	1706.741
	=	-4.56%

Array Technologies's Sloan Ratio for the quarter that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Dec. 2023 )
	=	(137.24	-	231.955
	-	-16.821)	/	1706.741
	=	-4.56%

Array Technologies's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 26.132 (Mar. 2023 ) + 64.808 (Jun. 2023 ) + 23.214 (Sep. 2023 ) + 23.086 (Dec. 2023 ) = $137 Mil.
Array Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 45.816 (Mar. 2023 ) + 20.54 (Jun. 2023 ) + 71.618 (Sep. 2023 ) + 93.981 (Dec. 2023 ) = $232 Mil.
Array Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -3.883 (Mar. 2023 ) + -5.541 (Jun. 2023 ) + -2.191 (Sep. 2023 ) + -5.206 (Dec. 2023 ) = $-17 Mil.

Array Technologies (NAS:ARRY) 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.

According to How to Beat the Market with the Sloan Ratio:

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, Array Technologies has a Sloan Ratio of -4.56%, indicating the company is in the safe zone and there is no funny business with accruals.

Array Technologies Sloan Ratio % Related Terms

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Array Technologies (Array Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Array Technologies Inc (NAS:ARRY) » Definitions » Sloan Ratio %

Comparable Companies

Traded in Other Exchanges

9AY:Germany 9AY:Germany

Address

3901 Midway Place NE, Albuquerque, NM, USA, 87109

Website

https://www.arraytechinc.com

Array Technologies Inc manufacturer of ground-mounting systems used in solar energy projects. The company's product is an integrated system of steel supports, electric motors, gearboxes and electronic controllers referred to as a single-axis tracker that move solar panels throughout the day to maintain an optimal orientation to the sun, which increases their energy production. Its operations are in the United States, Australia, Spain, Brazil and Rest of the World with the United States deriving the majority of the revenue.

Executives

Tyson Hottinger	officer: Chief Legal Officer	C/O ARRAY TECHNOLOGIES, INC., 3901 MIDWAY PLACE NE, ALBUQUERQUE NM 87109
Nipul M. Patel	officer: Chief Financial Officer	C/O ARRAY TECHNOLOGIES, INC., 3901 MIDWAY PLACE NE, ALBUQUERQUE NM 87109
Neil Manning	officer: Chief Operations Officer	3901 MIDWAY PLACE NE, ALBUQUERQUE NM 87109
Thierry Marin-martinod	officer: Chief Technology Officer	3901 MIDWAY PLACE NE, ALBUQUERQUE NM 87109
Tracy C Jokinen	director	5995 OPUS PARKWAY, SUITE 500, MINNETONKA MN 55343
Kenneth R. Stacherski	officer: Chief Operations Officer	500 W MONROE, CHICAGO IL 60661
Gerrard Schmid	director	C/O DIEBOLD NIXDORF, INCORPORATED, 5995 MAYFAIR ROAD, NORTH CANTON OH 44720
Terrance L Collins	officer: Chief Human Resources Officer	C/O ZEBRA TECHNOLOGIES CORPORATION, 475 HALF DAY ROAD, SUITE 500, LINCOLNSHIRE IL 60069
Erica Brinker	officer: Chief Commercial Officer	C/O ARRAY TECHNOLOGIES, INC., 3901 MIDWAY PLACE NE, ALBUQUERQUE NM 87109
Kevin G. Hostetler	director, officer: Chief Executive Officer	1925 WEST FIELD COURT, SUITE 200, LAKE FOREST IL 60045
Paulo Almirante	director	3901 MIDWAY PLACE NE, ALBUQUERQUE NM 87109
Travis Rose	officer: Chief Revenue Officer	C/O ARRAY TECHNOLOGIES, INC., 3901 MIDWAY PLACE NE, ALBUQUERQUE NM 87109
Bilal Khan	director	C/O THE BLACKSTONE GROUP INC., 345 PARK AVENUE, NEW YORK NY 10154
Jayanthi Iyengar	director	C/O ARRAY TECHNOLOGIES, INC., 3901 MIDWAY PLACE NE, ALBUQUERQUE NM 87109
Ati Investment Parent, Llc	10 percent owner	C/O ARRAY TECHNOLOGIES, INC., 3901 MIDWAY PLACE NE, ALBUQUERQUE NM 87109