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-Ohio Holdings's Sloan Ratio for the quarter that ended in Dec. 2023 was -2.51%.
As of Dec. 2023, Park-Ohio Holdings has a Sloan Ratio of -2.51%, indicating the company is in the safe zone and there is no funny business with accruals.
Park-Ohio Holdings Sloan Ratio % Historical Data
The historical data trend for Park-Ohio 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 Park-Ohio Holdings's Sloan Ratio %
For the Specialty Industrial Machinery subindustry, Park-Ohio 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.
Park-Ohio Holdings's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Park-Ohio Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Park-Ohio Holdings's Sloan Ratio % falls into.
Park-Ohio 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.
Park-Ohio Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Park-Ohio Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 5.8 (Mar. 2023 ) + 5.4 (Jun. 2023 ) + 11.1 (Sep. 2023 ) + -14.5 (Dec. 2023 ) = $8 Mil.
Park-Ohio Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 0.2 (Mar. 2023 ) + 0.7 (Jun. 2023 ) + 23.4 (Sep. 2023 ) + 29.1 (Dec. 2023 ) = $53 Mil.
Park-Ohio Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -5.1 (Mar. 2023 ) + -7.9 (Jun. 2023 ) + -7 (Sep. 2023 ) + 8.1 (Dec. 2023 ) = $-12 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-Ohio Holdings (NAS:PKOH) 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, Park-Ohio Holdings has a Sloan Ratio of -2.51%, indicating the company is in the safe zone and there is no funny business with accruals.
Park-Ohio Holdings Sloan Ratio % Related Terms
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Park-Ohio Holdings (Park-Ohio Holdings) Business Description
Park-Ohio Holdings Corp is a company, engaged in industrial supply chain logistics and diversified manufacturing business. It operates in three business segments namely Supply Technologies, Assembly Components and Engineered Products. Geographically, the business of the group is amplifying across the region of the United States, Asia, Europe, Canada, Mexico and others. The company derives most of the revenue from the Supply Technologies segment which provides the customer with total supply management services such as engineering and design support, supplier selection, quality assurance, barcoding, product packaging and tracking, just-in-time and point-of-use delivery and electronic billing services for a range of production components.
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