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.
Esterline Technologies's Sloan Ratio for the quarter that ended in Dec. 2018 was -1.28%.
As of Dec. 2018, Esterline Technologies has a Sloan Ratio of -1.28%, indicating the company is in the safe zone and there is no funny business with accruals.
Esterline Technologies 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 Esterline Technologies's Sloan Ratio %
For the Aerospace & Defense subindustry, Esterline 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.
Esterline Technologies's Sloan Ratio % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Esterline Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Esterline Technologies's Sloan Ratio % falls into.
Esterline 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.
Esterline Technologies's Sloan Ratio for the fiscal year that ended in Sep. 2018 is calculated as
Esterline Technologies's Net Income for the trailing twelve months (TTM) ended in Dec. 2018 was 23.877 (Mar. 2018 ) + 27.823 (Jun. 2018 ) + 52.739 (Sep. 2018 ) + 33.798 (Dec. 2018 ) = $138 Mil.
Esterline Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2018 was 27.28 (Mar. 2018 ) + 29.676 (Jun. 2018 ) + 94.687 (Sep. 2018 ) + 20.701 (Dec. 2018 ) = $172 Mil.
Esterline Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2018 was 33.93 (Mar. 2018 ) + -11.529 (Jun. 2018 ) + -11.041 (Sep. 2018 ) + -6.868 (Dec. 2018 ) = $4 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.
Esterline Technologies (NYSE:ESL) 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. 2018, Esterline Technologies has a Sloan Ratio of -1.28%, indicating the company is in the safe zone and there is no funny business with accruals.
Esterline Technologies Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Esterline Technologies's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Esterline Technologies (Esterline Technologies) Business Description
Esterline Technologies Corp is a specialized manufacturing company serving aerospace and defense markets. It designs, produces, and markets engineered products and systems. The company operates in three technology segments: Avionics & Controls, Sensors & Systems, and Advanced Materials. Its products have been implemented into military and commercial aircraft and land-based platforms. Additional sales result from aftermarket repairs and spare parts for existing systems. Esterline has worldwide sales and distribution channels and will try to strengthen customer relationships by targeting specific segments. Approximately half of its revenue is derived from the United States. The remainder of sales come from Canada, France, United Kingdom, and other smaller regions.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
ESL has been successfully added to your 