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.
Blount International's Sloan Ratio for the quarter that ended in Dec. 2015 was -12.06%.
As of Dec. 2015, Blount International has a Sloan Ratio of -12.06%, indicating there is a warning stage of accrual build up.
Blount International Sloan Ratio % Historical Data
The historical data trend for Blount International'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 Blount International's Sloan Ratio %
For the Tools & Accessories subindustry, Blount International'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.
Blount International's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Blount International's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Blount International's Sloan Ratio % falls into.
Blount International 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.
Blount International's Sloan Ratio for the fiscal year that ended in Dec. 2015 is calculated as
Blount International's Net Income for the trailing twelve months (TTM) ended in Dec. 2015 was 9.042 (Mar. 2015 ) + -49.542 (Jun. 2015 ) + 12.266 (Sep. 2015 ) + -21.639 (Dec. 2015 ) = $-49.9 Mil.
Blount International's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2015 was -11.358 (Mar. 2015 ) + 21.412 (Jun. 2015 ) + 37.292 (Sep. 2015 ) + 13.904 (Dec. 2015 ) = $61.3 Mil.
Blount International's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2015 was -8.915 (Mar. 2015 ) + -9.69 (Jun. 2015 ) + -11.329 (Sep. 2015 ) + 2.376 (Dec. 2015 ) = $-27.6 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.
Blount International (NYSE:BLT) 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. 2015, Blount International has a Sloan Ratio of -12.06%, indicating there is a warning stage of accrual build up.
Blount International Sloan Ratio % Related Terms
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Blount International (Blount International) Business Description
Blount International Inc is a global industrial company. The Company designs, manufactures, and markets equipment, replacement and component parts, and accessories for professionals and consumers in select end-markets under its proprietary brand names. It also manufactures and markets such items to original equipment manufacturers ("OEMs") under private label brand names. The Company specializes in manufacturing cutting parts and equipment used in forestry, lawn, and garden; farming, ranching, and agricultural; and construction applications. It also purchases products manufactured by other suppliers that are aligned with the markets it serves and market them, typically under one of its brands, through its global sales and distribution network. Its products are sold in more than 110 countries and approximately 54% of its 2013 sales were shipped to customers outside of the United States of America ("U.S."). The Company operates in two primary business segments: the Forestry, Lawn, and Garden ("FLAG") segment and the Farm Ranch and Agriculture ("FRAG") segment. The FLAG segment manufactures and markets cutting chain, guide bars, and drive sprockets for chain saw use, and lawnmower and edger blades for outdoor power equipment. The FLAG segment also purchases replacement parts and accessories from other manufacturers and markets them, primarily under its brands, to its FLAG customers through its global sales and distribution network. The FLAG segment currently includes the operations of the Company that have historically served the forestry, lawn, and garden markets, as well as KOX GmbH and related companies (collectively "KOX"), and a portion of Finalame SA, which includes PBL SA and related companies (collectively "PBL"). The Company's FRAG segment designs, manufactures, assembles and markets attachments and implements for tractors in a variety of mowing, cutting, clearing, material handling, landscaping and grounds maintenance applications, as well as log splitters, post-hole diggers, self-propelled lawnmowers, attachments for off-highway construction equipment applications, and other general purpose tractor attachments. In addition, the FRAG segment manufactures a variety of attachment cutting blade parts. The FRAG segment also purchases replacement parts and accessories from other manufacturers that it markets to its FRAG customers through its sales and distribution network. The FRAG segment currently includes the operations of SP Companies, Inc. and SpeeCo, Inc. (collectively "SpeeCo"), GenWoods HoldCo, LLC and its wholly-owned subsidiary, Woods Equipment Company (collectively "Woods/TISCO"), and a portion of PBL. The Company also operates a concrete cutting and finishing equipment business that is reported within the Corporate and Other category. This business manufactures and markets diamond cutting chain and assembles and markets concrete cutting chain saws for the construction and utility markets.
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