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.
Ardmore Shipping's Sloan Ratio for the quarter that ended in Dec. 2023 was -2.31%.
As of Dec. 2023, Ardmore Shipping has a Sloan Ratio of -2.31%, indicating the company is in the safe zone and there is no funny business with accruals.
Ardmore Shipping Sloan Ratio % Historical Data
The historical data trend for Ardmore Shipping'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 Ardmore Shipping's Sloan Ratio %
For the Marine Shipping subindustry, Ardmore Shipping'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.
Ardmore Shipping's Sloan Ratio % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Ardmore Shipping's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Ardmore Shipping's Sloan Ratio % falls into.
Ardmore Shipping 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.
Ardmore Shipping's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Ardmore Shipping's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 44.09 (Mar. 2023 ) + 24.507 (Jun. 2023 ) + 21.203 (Sep. 2023 ) + 27.009 (Dec. 2023 ) = $116.8 Mil.
Ardmore Shipping's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 56.822 (Mar. 2023 ) + 42.077 (Jun. 2023 ) + 41.967 (Sep. 2023 ) + 18.743 (Dec. 2023 ) = $159.6 Mil.
Ardmore Shipping's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -6.182 (Mar. 2023 ) + -5.992 (Jun. 2023 ) + -6.469 (Sep. 2023 ) + -8.193 (Dec. 2023 ) = $-26.8 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.
Ardmore Shipping (NYSE:ASC) 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, Ardmore Shipping has a Sloan Ratio of -2.31%, indicating the company is in the safe zone and there is no funny business with accruals.
Ardmore Shipping Sloan Ratio % Related Terms
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Ardmore Shipping (Ardmore Shipping) Business Description
Ardmore Shipping Corp owns and operates a fleet of mid-size product and chemical tankers, which provide seaborne transportation of petroleum products and chemicals across the globe. The company is focused on fuel efficiency and cost leadership, and it provides its shipping services to customers through voyage charters, commercial pools, and time charters. Its main customers are oil majors, national oil companies, oil and chemical traders, and chemical companies.
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