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.
Spirit AeroSystems Holdings's Sloan Ratio for the quarter that ended in Dec. 2023 was -3.49%.
As of Dec. 2023, Spirit AeroSystems Holdings has a Sloan Ratio of -3.49%, indicating the company is in the safe zone and there is no funny business with accruals.
Spirit AeroSystems Holdings Sloan Ratio % Historical Data
The historical data trend for Spirit AeroSystems 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.
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Spirit AeroSystems Holdings Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Sloan Ratio %
-2.01
4.49
-4.06
0.07
-3.49
Spirit AeroSystems Holdings Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Sloan Ratio %
0.07
-6.89
-6.22
-6.50
-3.49
Competitive Comparison
For the Aerospace & Defense subindustry, Spirit AeroSystems 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.
Spirit AeroSystems Holdings Sloan Ratio % Distribution
For the Aerospace & Defense industry and Industrials sector, Spirit AeroSystems Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Spirit AeroSystems Holdings's Sloan Ratio % falls into.
Spirit AeroSystems 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.
Spirit AeroSystems Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Spirit AeroSystems Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -281.2 (Mar. 2023 ) + -206.3 (Jun. 2023 ) + -204.1 (Sep. 2023 ) + 75.4 (Dec. 2023 ) = $-616 Mil.
Spirit AeroSystems Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -46.2 (Mar. 2023 ) + -182.8 (Jun. 2023 ) + -110.5 (Sep. 2023 ) + 113.7 (Dec. 2023 ) = $-226 Mil.
Spirit AeroSystems Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -22.9 (Mar. 2023 ) + -28.4 (Jun. 2023 ) + -25.2 (Sep. 2023 ) + -71.3 (Dec. 2023 ) = $-148 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.
Spirit AeroSystems Holdings (NYSE:SPR) 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, Spirit AeroSystems Holdings has a Sloan Ratio of -3.49%, indicating the company is in the safe zone and there is no funny business with accruals.
Spirit AeroSystems Holdings Sloan Ratio % Related Terms
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Spirit AeroSystems Holdings (Spirit AeroSystems Holdings) Business Description
Spirit AeroSystems manufactures aerostructures, particularly fuselages, cockpits, wing sections, engine pylons, and nacelles for commercial and military aircraft. The company was spun out of Boeing in 2005, and the firm is the largest independent supplier of aerostructures for commercial aircraft. Boeing and Airbus are the firm's primary customers—Boeing represented roughly 60% and Airbus roughly 20% of revenue in recent years. The company is highly exposed to Boeing's 737 program, which accounts for nearly half the company's revenue.
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