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.
Orion Group Holdings's Sloan Ratio for the quarter that ended in Dec. 2023 was -8.93%.
As of Dec. 2023, Orion Group Holdings has a Sloan Ratio of -8.93%, indicating the company is in the safe zone and there is no funny business with accruals.
Orion Group Holdings Sloan Ratio % Historical Data
The historical data trend for Orion Group Holdings'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 Orion Group Holdings's Sloan Ratio %
For the Engineering & Construction subindustry, Orion Group Holdings'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.
Orion Group Holdings's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Orion Group Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Orion Group Holdings's Sloan Ratio % falls into.
Orion Group Holdings 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.
Orion Group Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Orion Group Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -12.595 (Mar. 2023 ) + -0.255 (Jun. 2023 ) + -0.66 (Sep. 2023 ) + -4.365 (Dec. 2023 ) = $-17.9 Mil.
Orion Group Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -3.033 (Mar. 2023 ) + -8.943 (Jun. 2023 ) + -16.525 (Sep. 2023 ) + 45.679 (Dec. 2023 ) = $17.2 Mil.
Orion Group Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -1.3 (Mar. 2023 ) + 8.341 (Jun. 2023 ) + -1.65 (Sep. 2023 ) + -3.221 (Dec. 2023 ) = $2.2 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.
Orion Group Holdings (NYSE:ORN) 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, Orion Group Holdings has a Sloan Ratio of -8.93%, indicating the company is in the safe zone and there is no funny business with accruals.
Orion Group Holdings Sloan Ratio % Related Terms
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Orion Group Holdings (Orion Group Holdings) Business Description
Orion Group Holdings Inc is a specialty construction company serving the infrastructure, industrial, and building sectors, providing services both on and off the water in the continental United States, Alaska, Canada and the Caribbean Basin through its marine segment and its concrete segment. Its marine segment provides construction and dredging services relating to marine transportation facility construction, marine pipeline construction, marine environmental structures, dredging of waterways, channels and ports, environmental dredging, design, and specialty services. Its concrete segment provides turnkey concrete construction services including pour and finish, dirt work, layout, forming, rebar, and mesh across the light commercial, structural and other associated business areas.
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