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.
Thor Industries's Sloan Ratio for the quarter that ended in Jan. 2024 was -4.02%.
As of Jan. 2024, Thor Industries has a Sloan Ratio of -4.02%, indicating the company is in the safe zone and there is no funny business with accruals.
Thor Industries Sloan Ratio % Historical Data
The historical data trend for Thor Industries'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.
For the Recreational Vehicles subindustry, Thor Industries'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.
Thor Industries Sloan Ratio % Distribution
For the Vehicles & Parts industry and Consumer Cyclical sector, Thor Industries's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Thor Industries's Sloan Ratio % falls into.
Thor Industries 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.
Thor Industries's Sloan Ratio for the fiscal year that ended in Jul. 2023 is calculated as
Thor Industries's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was 120.719 (Apr. 2023 ) + 90.287 (Jul. 2023 ) + 53.565 (Oct. 2023 ) + 7.217 (Jan. 2024 ) = $272 Mil.
Thor Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was 288.799 (Apr. 2023 ) + 507.513 (Jul. 2023 ) + 59.668 (Oct. 2023 ) + -103.868 (Jan. 2024 ) = $752 Mil.
Thor Industries's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -57.814 (Apr. 2023 ) + -50.921 (Jul. 2023 ) + -51.062 (Oct. 2023 ) + -29.881 (Jan. 2024 ) = $-190 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.
Thor Industries (NYSE:THO) 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 Jan. 2024, Thor Industries has a Sloan Ratio of -4.02%, indicating the company is in the safe zone and there is no funny business with accruals.
Thor Industries Sloan Ratio % Related Terms
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Thor Industries (Thor Industries) Business Description
Based in Elkhart, Indiana, Thor Industries manufactures Class A, Class B, and Class C motor homes along with travel trailers and fifth wheel towables across over 30 brands. Through the acquisition of Erwin Hymer in 2019, the company expanded its geographic footprint and now produces various motorized and towable recreational vehicles for Europe, including motorcaravans, campervans, urban vehicles, caravans, and other RV-related products and services. The company has also begun generating revenue through aftermarket component parts through the acquisition of Airxcel in 2021, however, this is still a nascent part of the business as it accounts for less than 10% of total sales. In fiscal 2023, the company wholesaled 187,015 units and generated over $11.1 billion in revenue.
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