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.
Sypris Solutions's Sloan Ratio for the quarter that ended in Dec. 2023 was 8.99%.
As of Dec. 2023, Sypris Solutions has a Sloan Ratio of 8.99%, indicating the company is in the safe zone and there is no funny business with accruals.
Sypris Solutions Sloan Ratio % Historical Data
The historical data trend for Sypris Solutions'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 Sypris Solutions's Sloan Ratio %
For the Auto Parts subindustry, Sypris Solutions'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.
Sypris Solutions's Sloan Ratio % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Sypris Solutions's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sypris Solutions's Sloan Ratio % falls into.
Sypris Solutions 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.
Sypris Solutions's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Sypris Solutions's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -0.175 (Mar. 2023 ) + 0.213 (Jun. 2023 ) + -0.555 (Sep. 2023 ) + -1.079 (Dec. 2023 ) = $-1.6 Mil.
Sypris Solutions's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -1.241 (Mar. 2023 ) + 4.929 (Jun. 2023 ) + -11.857 (Sep. 2023 ) + -2.92 (Dec. 2023 ) = $-11.1 Mil.
Sypris Solutions's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.708 (Mar. 2023 ) + -0.818 (Jun. 2023 ) + -0.364 (Sep. 2023 ) + -0.249 (Dec. 2023 ) = $-2.1 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.
Sypris Solutions (NAS:SYPR) 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, Sypris Solutions has a Sloan Ratio of 8.99%, indicating the company is in the safe zone and there is no funny business with accruals.
Sypris Solutions Sloan Ratio % Related Terms
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Sypris Solutions (Sypris Solutions) Business Description
Sypris Solutions Inc is a us based company engaged in providing outsourced services and specialty products. It offers a range of manufacturing, engineering, design and other technical services. Business activity of the firm is functioned through Sypris Technologies and Sypris Electronics segments. Sypris Technologies segment is engaged in the sale of goods and manufacturing services to customers in the market for truck components and assemblies and from the sale of products to the energy and chemical markets whereas the Sypris Electronics segment is engaged in the sale of manufacturing services, technical services, and products to customers in the market for aerospace and defense electronics. Sypris derives most of the revenue from Technologies segment.
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