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.
Park Aerospace's Sloan Ratio for the quarter that ended in Nov. 2023 was -18.09%.
As of Nov. 2023, Park Aerospace has a Sloan Ratio of -18.09%, indicating there is a warning stage of accrual build up.
Park Aerospace Sloan Ratio % Historical Data
The historical data trend for Park Aerospace'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 Park Aerospace's Sloan Ratio %
For the Aerospace & Defense subindustry, Park Aerospace'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.
Park Aerospace's Sloan Ratio % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Park Aerospace's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Park Aerospace's Sloan Ratio % falls into.
Park Aerospace 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.
Park Aerospace's Sloan Ratio for the fiscal year that ended in Feb. 2023 is calculated as
Park Aerospace's Net Income for the trailing twelve months (TTM) ended in Nov. 2023 was 4.706 (Feb. 2023 ) + 1.854 (May. 2023 ) + 1.746 (Aug. 2023 ) + 1.203 (Nov. 2023 ) = $9.51 Mil.
Park Aerospace's Cash Flow from Operations for the trailing twelve months (TTM) ended in Nov. 2023 was 4.357 (Feb. 2023 ) + 0.117 (May. 2023 ) + -2.762 (Aug. 2023 ) + 1.759 (Nov. 2023 ) = $3.47 Mil.
Park Aerospace's Cash Flow from Investing for the trailing twelve months (TTM) ended in Nov. 2023 was -2.683 (Feb. 2023 ) + 26.181 (May. 2023 ) + 8.031 (Aug. 2023 ) + -2.429 (Nov. 2023 ) = $29.10 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.
Park Aerospace (NYSE:PKE) 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 Nov. 2023, Park Aerospace has a Sloan Ratio of -18.09%, indicating there is a warning stage of accrual build up.
Park Aerospace Sloan Ratio % Related Terms
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Park Aerospace (Park Aerospace) Business Description
Park Aerospace Corp designs develop and manufactures engineered, Advanced composite materials and composite structures and assemblies and low-volume tooling for the aerospace markets and prototype tooling for such structures and assemblies. It only operating business segments is Aerospace. Geographically, the company derives a majority of revenue from North America and also has a presence in a company operates its business in Asia and Europe. It offers Advanced Composite Prepregs for Aircraft Structures and Interiors, Sigma Strut and Alpha Strut.
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