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Stanley Black & Decker (Stanley Black & Decker) Sloan Ratio %

: -4.96% (As of Dec. 2023)
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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.

Stanley Black & Decker's Sloan Ratio for the quarter that ended in Dec. 2023 was -4.96%.

As of Dec. 2023, Stanley Black & Decker has a Sloan Ratio of -4.96%, indicating the company is in the safe zone and there is no funny business with accruals.


Stanley Black & Decker Sloan Ratio % Historical Data

The historical data trend for Stanley Black & Decker'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.

* Premium members only.

Stanley Black & Decker Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Sloan Ratio %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.20 3.35 12.95 -4.21 -4.96

Stanley Black & Decker Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Sloan Ratio % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -4.21 -9.85 -12.73 -3.29 -4.96

Competitive Comparison

For the Tools & Accessories subindustry, Stanley Black & Decker'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.


Stanley Black & Decker Sloan Ratio % Distribution

For the Industrial Products industry and Industrials sector, Stanley Black & Decker's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Stanley Black & Decker's Sloan Ratio % falls into.



Stanley Black & Decker 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.

Stanley Black & Decker's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2023 )-Cash Flow from Operations (A: Dec. 2023 )
-Cash Flow from Investing (A: Dec. 2023 ))/Total Assets (A: Dec. 2023 )
=(-310.5-1191.3
--327.7)/23663.8
=-4.96%

Stanley Black & Decker's Sloan Ratio for the quarter that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Dec. 2023 )
=(-310.5-1191.3
--327.7)/23663.8
=-4.96%

Stanley Black & Decker's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -187.8 (Mar. 2023 ) + 177 (Jun. 2023 ) + 4.7 (Sep. 2023 ) + -304.4 (Dec. 2023 ) = $-311 Mil.
Stanley Black & Decker's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -286.3 (Mar. 2023 ) + 264.4 (Jun. 2023 ) + 443.9 (Sep. 2023 ) + 769.3 (Dec. 2023 ) = $1,191 Mil.
Stanley Black & Decker's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -61.2 (Mar. 2023 ) + -69.2 (Jun. 2023 ) + -76.4 (Sep. 2023 ) + -120.9 (Dec. 2023 ) = $-328 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.


Stanley Black & Decker  (NYSE:SWK) 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.

According to How to Beat the Market with the Sloan Ratio:

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, Stanley Black & Decker has a Sloan Ratio of -4.96%, indicating the company is in the safe zone and there is no funny business with accruals.


Stanley Black & Decker Sloan Ratio % Related Terms

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Stanley Black & Decker (Stanley Black & Decker) Business Description

Address
1000 Stanley Drive, New Britain, CT, USA, 06053
Stanley Black & Decker Inc is a manufacturer of hand and power tools. The company operates in two reportable segments namely Tools and Outdoor and Industrial. It generates maximum revenue from the Tools and Outdoor segment. The Tools and Outdoor segment is comprised of the Power Tools Group (PTG), Hand Tools, Accessories and Storage (HTAS), and Outdoor Power Equipment (Outdoor) businesses. Geographically, it derives a majority of its revenue from the United States.
Executives
Graham Robinson officer: SVP & President of Industrial 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Susan K Carter director C/O INGERSOLL-RAND COMPANY, 800-E BEATY STREET, DAVIDSON NC 28036
Janet Link officer: SVP, General Counsel & Sec'y 6501 LEGACY DRIVE, PLANO TX 75024
Christopher John Nelson officer: Chief Operating Officer 13995 PASTEUR BOULEVARD, PALM BEACH GARDENS FL 33418
Tamer Abuaita officer: SVP, Global Supply Chain C/O SOVOS BRANDS, INC., 168 CENTENNIAL PARKWAY, SUITE 200, LOUISVILLE CO 80027
Patrick D Hallinan officer: EVP, Chief Financial Officer FORTUNE BRANDS HOME & SECURITY, INC., 520 LAKE COOK ROAD, DEERFIELD IL 60015
John Lucas officer: SVP, Chief HR Officer 200 INNOVATION WAY, AKRON OH 44316
Walburger Corbin officer: Interim CFO 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Scot Greulach officer: Chief Accounting Officer 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Robert J Manning director 1201 THIRD AVE, STE 4900, SEATTLE WA 98101
Andrea J. Ayers director STANLEY BLACK & DECKER, IN., 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Jocelyn Belisle officer: VP, Chief Accounting Officer 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Stephen Subasic officer: SVP, Chief HR Officer 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Adrian V Mitchell director C/O MACY'S, INC., 151 WEST 34TH STREET, NEW YORK NY 10001
Jaime A Ramirez officer: Pres.Construct.&DIY, Latin Am. 1000 STANLEY DRIVE, NEW BRITAIN CT 06053