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.
Sturm Ruger's Sloan Ratio for the quarter that ended in Dec. 2023 was -6.66%.
As of Dec. 2023, Sturm Ruger has a Sloan Ratio of -6.66%, indicating the company is in the safe zone and there is no funny business with accruals.
Sturm Ruger Sloan Ratio % Historical Data
The historical data trend for Sturm Ruger'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 Sturm Ruger's Sloan Ratio %
For the Aerospace & Defense subindustry, Sturm Ruger'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.
Sturm Ruger's Sloan Ratio % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Sturm Ruger's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sturm Ruger's Sloan Ratio % falls into.
Sturm Ruger 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.
Sturm Ruger's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Sturm Ruger's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 14.35 (Mar. 2023 ) + 16.185 (Jun. 2023 ) + 7.431 (Sep. 2023 ) + 10.249 (Dec. 2023 ) = $48.2 Mil.
Sturm Ruger's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 5.284 (Mar. 2023 ) + 16.529 (Jun. 2023 ) + -4.515 (Sep. 2023 ) + 16.603 (Dec. 2023 ) = $33.9 Mil.
Sturm Ruger's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 35.456 (Mar. 2023 ) + -7.405 (Jun. 2023 ) + 12.998 (Sep. 2023 ) + -0.193 (Dec. 2023 ) = $40.9 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.
Sturm Ruger (NYSE:RGR) 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, Sturm Ruger has a Sloan Ratio of -6.66%, indicating the company is in the safe zone and there is no funny business with accruals.
Sturm Ruger Sloan Ratio % Related Terms
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Sturm Ruger & Co Inc and its subsidiary are principally engaged in the design, manufacture, and sale of firearms to domestic customers. The company's design and manufacturing operations are in the United States and almost all product content is domestic. The company primarily offers products in three industry product categories namely rifles, pistols, and revolvers. The company's firearms are sold through independent wholesale distributors, principally to the commercial sporting market. It also manufactures and sells investment castings made from steel alloys and metal injection molding parts for internal use in the firearms segment and has minimal sales to outside customers.
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