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.
* 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 Sterling Infrastructure's Sloan Ratio %
For the Engineering & Construction subindustry, Sterling Infrastructure'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.
Sterling Infrastructure's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Sterling Infrastructure's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sterling Infrastructure's Sloan Ratio % falls into.
Sterling Infrastructure 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.
Sterling Infrastructure's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Sterling Infrastructure's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 19.649 (Mar. 2023 ) + 39.48 (Jun. 2023 ) + 39.353 (Sep. 2023 ) + 40.173 (Dec. 2023 ) = $139 Mil.
Sterling Infrastructure's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 49.058 (Mar. 2023 ) + 132.049 (Jun. 2023 ) + 150.108 (Sep. 2023 ) + 147.369 (Dec. 2023 ) = $479 Mil.
Sterling Infrastructure's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 6.505 (Mar. 2023 ) + -22.839 (Jun. 2023 ) + -9.303 (Sep. 2023 ) + -62.115 (Dec. 2023 ) = $-88 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.
Sterling Infrastructure (NAS:STRL) 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, Sterling Infrastructure has a Sloan Ratio of -14.19%, indicating there is a warning stage of accrual build up.
Sterling Infrastructure Sloan Ratio % Related Terms
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Sterling Infrastructure (Sterling Infrastructure) Business Description
Sterling Infrastructure Inc is a construction company that specializes in heavy civil infrastructure construction and infrastructure rehabilitation as well as residential construction projects. The company operates in three reportable segments namely, Transportation Solutions, E-Infrastructure Solutions, and Building Solution. Transportation Solutions include highways, roads, bridges, airfields, ports, light rail, and others. Building Solution projects include concrete foundations for single-family homes. E-Infrastructure Solutions include the services which are provided to large, blue-chip companies in the e-commerce, data center, distribution center, and warehousing, energy, mixed-use, and multi-family sectors. The majority of the revenue is generated from E-Infrastructure Solutions. .
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