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.
* 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 Gulf Island Fabrication's Sloan Ratio %
For the Metal Fabrication subindustry, Gulf Island Fabrication'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.
Gulf Island Fabrication's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Gulf Island Fabrication's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Gulf Island Fabrication's Sloan Ratio % falls into.
Gulf Island Fabrication 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.
Gulf Island Fabrication's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Gulf Island Fabrication's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 0.641 (Mar. 2023 ) + 1.102 (Jun. 2023 ) + -33.235 (Sep. 2023 ) + 7.09 (Dec. 2023 ) = $-24.4 Mil.
Gulf Island Fabrication's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 1.296 (Mar. 2023 ) + -3.489 (Jun. 2023 ) + 2.021 (Sep. 2023 ) + 7.369 (Dec. 2023 ) = $7.2 Mil.
Gulf Island Fabrication's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -5.219 (Mar. 2023 ) + -0.746 (Jun. 2023 ) + -0.626 (Sep. 2023 ) + 6.088 (Dec. 2023 ) = $-0.5 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.
Gulf Island Fabrication (NAS:GIFI) 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, Gulf Island Fabrication has a Sloan Ratio of -24.21%, indicating there is a warning stage of accrual build up.
Gulf Island Fabrication Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Gulf Island Fabrication's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Gulf Island Fabrication (Gulf Island Fabrication) Business Description
Gulf Island Fabrication Inc is a U.S.-based company that is a fabricator of complex steel structures and marine vessels. The company also provides installation, hook-up, commissioning, repair, and maintenance services with specialized crews. The company operates through segments namely Fabrication division fabricates structures such as offshore drilling and production platforms and other steel structures for customers in the oil and gas industries; the Shipyards division manufactures newly built and repairs various steel marine vessels in the United States; the Services division provides interconnect piping services on offshore platforms, welding, and inshore structures and also provides maintenance and industrial facilities.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
GIFI has been successfully added to your 