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.
Douglas Dynamics's Sloan Ratio for the quarter that ended in Dec. 2023 was 3.67%.
As of Dec. 2023, Douglas Dynamics has a Sloan Ratio of 3.67%, indicating the company is in the safe zone and there is no funny business with accruals.
Douglas Dynamics Sloan Ratio % Historical Data
The historical data trend for Douglas Dynamics'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 Douglas Dynamics's Sloan Ratio %
For the Auto Parts subindustry, Douglas Dynamics'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.
Douglas Dynamics's Sloan Ratio % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Douglas Dynamics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Douglas Dynamics's Sloan Ratio % falls into.
Douglas Dynamics 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.
Douglas Dynamics's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Douglas Dynamics's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -13.11 (Mar. 2023 ) + 23.964 (Jun. 2023 ) + 5.792 (Sep. 2023 ) + 7.077 (Dec. 2023 ) = $23.7 Mil.
Douglas Dynamics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -56.916 (Mar. 2023 ) + -9.311 (Jun. 2023 ) + 2.079 (Sep. 2023 ) + 76.617 (Dec. 2023 ) = $12.5 Mil.
Douglas Dynamics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -2.748 (Mar. 2023 ) + -2.542 (Jun. 2023 ) + -2.433 (Sep. 2023 ) + -2.798 (Dec. 2023 ) = $-10.5 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.
Douglas Dynamics (NYSE:PLOW) 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, Douglas Dynamics has a Sloan Ratio of 3.67%, indicating the company is in the safe zone and there is no funny business with accruals.
Douglas Dynamics Sloan Ratio % Related Terms
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Douglas Dynamics (Douglas Dynamics) Business Description
Douglas Dynamics Inc is a manufacturer and upfitter of commercial vehicle attachments and equipment. The Company's portfolio includes snow and ice management attachments sold under the BLIZZARD, FISHER, HENDERSON, SNOWEX and WESTERN brands, turf care equipment under the TURFEX brand and industrial maintenance equipment under the SWEEPEX brand. The Company's portfolio also includes the upfit of attachments and storage solutions under the HENDERSON brand, and the DEJANA brand and its related sub-brands. The Company also leases fifteen manufacturing and upfit and service facilities located in Iowa, Maryland, Missouri, New Jersey, New York, Ohio, Pennsylvania, and Rhode Island. The Company conducts business in two segments: Work Truck Attachments and Work Truck Solutions.
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