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.
Strattec Security's Sloan Ratio for the quarter that ended in Dec. 2023 was -3.10%.
As of Dec. 2023, Strattec Security has a Sloan Ratio of -3.10%, indicating the company is in the safe zone and there is no funny business with accruals.
Strattec Security Sloan Ratio % Historical Data
The historical data trend for Strattec Security'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 Strattec Security's Sloan Ratio %
For the Auto Parts subindustry, Strattec Security'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.
Strattec Security's Sloan Ratio % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Strattec Security's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Strattec Security's Sloan Ratio % falls into.
Strattec Security 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.
Strattec Security's Sloan Ratio for the fiscal year that ended in Jun. 2023 is calculated as
Strattec Security's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -2.256 (Mar. 2023 ) + -2.7 (Jun. 2023 ) + 4.165 (Sep. 2023 ) + 1.022 (Dec. 2023 ) = $0.2 Mil.
Strattec Security's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -1.223 (Mar. 2023 ) + 2.583 (Jun. 2023 ) + -3.872 (Sep. 2023 ) + -3.042 (Dec. 2023 ) = $-5.6 Mil.
Strattec Security's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -4.369 (Mar. 2023 ) + 22.847 (Jun. 2023 ) + -0.92 (Sep. 2023 ) + -1.473 (Dec. 2023 ) = $16.1 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.
Strattec Security (NAS:STRT) 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, Strattec Security has a Sloan Ratio of -3.10%, indicating the company is in the safe zone and there is no funny business with accruals.
Strattec Security Sloan Ratio % Related Terms
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Strattec Security (Strattec Security) Business Description
Strattec Security Corp designs develops, manufactures and markets mechanical locks, electronically enhanced locks and keys. It also produces ignition lock housings; access control products, including latches, power sliding door systems, and door handles. Strattec ships products to customer locations in the United States, Canada, Mexico, Europe, South America, Korea and China, and provides full-service aftermarket support. Strattec also supplies products for the heavy truck and recreational vehicle markets, as well as precision, die castings.
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