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.
Northwest Pipe Co's Sloan Ratio for the quarter that ended in Dec. 2023 was -2.01%.
As of Dec. 2023, Northwest Pipe Co has a Sloan Ratio of -2.01%, indicating the company is in the safe zone and there is no funny business with accruals.
Northwest Pipe Co Sloan Ratio % Historical Data
The historical data trend for Northwest Pipe Co'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 Northwest Pipe Co's Sloan Ratio %
For the Metal Fabrication subindustry, Northwest Pipe Co'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.
Northwest Pipe Co's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Northwest Pipe Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Northwest Pipe Co's Sloan Ratio % falls into.
Northwest Pipe Co 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.
Northwest Pipe Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Northwest Pipe Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 2.362 (Mar. 2023 ) + 7.448 (Jun. 2023 ) + 5.818 (Sep. 2023 ) + 5.444 (Dec. 2023 ) = $21.1 Mil.
Northwest Pipe Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 26.282 (Mar. 2023 ) + 1.197 (Jun. 2023 ) + 16.93 (Sep. 2023 ) + 9.046 (Dec. 2023 ) = $53.5 Mil.
Northwest Pipe Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -4.382 (Mar. 2023 ) + -6.754 (Jun. 2023 ) + -4.776 (Sep. 2023 ) + -4.46 (Dec. 2023 ) = $-20.4 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.
Northwest Pipe Co (NAS:NWPX) 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, Northwest Pipe Co has a Sloan Ratio of -2.01%, indicating the company is in the safe zone and there is no funny business with accruals.
Northwest Pipe Co Sloan Ratio % Related Terms
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Northwest Pipe Co (Northwest Pipe Co) Business Description
Northwest Pipe Co is a manufacturer of water-related infrastructure products. The company has two operating segments; Engineered Steel Pressure Pipe segment manufactures large-diameter, high-pressure steel pipeline systems for use in water infrastructure applications, which are related to drinking water systems. These products are also used for hydroelectric power systems, wastewater systems, seismic resiliency, and other applications, and Precast Infrastructure and Engineered Systems segment manufacture stormwater and wastewater technology products, high-quality precast and reinforced concrete products, including manholes, box culverts, vaults, and catch basins, pump lift stations, oil water separators, biofiltration, and other environmental and engineered solutions.
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