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.
Marten Transport's Sloan Ratio for the quarter that ended in Dec. 2023 was 7.93%.
As of Dec. 2023, Marten Transport has a Sloan Ratio of 7.93%, indicating the company is in the safe zone and there is no funny business with accruals.
Marten Transport Sloan Ratio % Historical Data
The historical data trend for Marten Transport'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.
For the Trucking subindustry, Marten Transport'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.
Marten Transport Sloan Ratio % Distribution
For the Transportation industry and Industrials sector, Marten Transport's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Marten Transport's Sloan Ratio % falls into.
Marten Transport 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.
Marten Transport's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Marten Transport's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 22.502 (Mar. 2023 ) + 21.874 (Jun. 2023 ) + 13.598 (Sep. 2023 ) + 12.399 (Dec. 2023 ) = $70 Mil.
Marten Transport's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 49.232 (Mar. 2023 ) + 48.969 (Jun. 2023 ) + 28.132 (Sep. 2023 ) + 38.045 (Dec. 2023 ) = $164 Mil.
Marten Transport's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -28.28 (Mar. 2023 ) + -60.359 (Jun. 2023 ) + -35.831 (Sep. 2023 ) + -48.07 (Dec. 2023 ) = $-173 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.
Marten Transport (NAS:MRTN) 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, Marten Transport has a Sloan Ratio of 7.93%, indicating the company is in the safe zone and there is no funny business with accruals.
Marten Transport Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Marten Transport's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Marten Transport (Marten Transport) Business Description
Marten Transport Ltd is a temperature-sensitive truckload carrier in the United States. It is engaged in transporting and distributing food and other consumer packaged goods which requires a temperature-controlled or insulated environment. The company operates through four segments including Truckload, Dedicated, Intermodal, and Brokerage. It generates maximum revenue from the Truckload segment. The Truckload segment provides a combination of regional short-haul and medium-to-long-haul full-load transportation services.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
MRTN has been successfully added to your 