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.
Mettler-Toledo International's Sloan Ratio for the quarter that ended in Dec. 2023 was -1.35%.
As of Dec. 2023, Mettler-Toledo International has a Sloan Ratio of -1.35%, indicating the company is in the safe zone and there is no funny business with accruals.
Mettler-Toledo International Sloan Ratio % Historical Data
The historical data trend for Mettler-Toledo 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.
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Mettler-Toledo International Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Sloan Ratio %
2.03
-0.77
5.24
4.38
-1.35
Mettler-Toledo International Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Sloan Ratio %
4.38
3.52
2.48
0.85
-1.35
Competitive Comparison
For the Diagnostics & Research subindustry, Mettler-Toledo 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.
Mettler-Toledo International Sloan Ratio % Distribution
For the Medical Diagnostics & Research industry and Healthcare sector, Mettler-Toledo International's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Mettler-Toledo International's Sloan Ratio % falls into.
Mettler-Toledo 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.
Mettler-Toledo International's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Mettler-Toledo International's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 188.426 (Mar. 2023 ) + 213.927 (Jun. 2023 ) + 201.631 (Sep. 2023 ) + 184.794 (Dec. 2023 ) = $789 Mil.
Mettler-Toledo International's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 153.262 (Mar. 2023 ) + 266.811 (Jun. 2023 ) + 264.296 (Sep. 2023 ) + 281.505 (Dec. 2023 ) = $966 Mil.
Mettler-Toledo International's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -22.386 (Mar. 2023 ) + -42.912 (Jun. 2023 ) + -30.895 (Sep. 2023 ) + -35.501 (Dec. 2023 ) = $-132 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.
Mettler-Toledo International (NYSE:MTD) 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, Mettler-Toledo International has a Sloan Ratio of -1.35%, indicating the company is in the safe zone and there is no funny business with accruals.
Mettler-Toledo International Sloan Ratio % Related Terms
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Mettler-Toledo International (Mettler-Toledo International) Business Description
Mettler-Toledo supplies weighing and precision instruments to customers in the life sciences, industrial, and food retail industries. Its products include laboratory and retail scales, pipettes, pH meters, thermal analysis equipment, titrators, metal detectors, and X-ray analyzers. Mettler leads the market for weighing instrumentation and controls more than 50% of the market for lab balances. The business is geographically diversified, with sales distribution roughly as follows: United States around 30% of sales, Europe around 30%, China around 20%, and the rest of the world around 20%.
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