GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » Build Acquisition Corp (NYSE:BGSX.U) » Definitions » Sloan Ratio %

BGSX.U (Build Acquisition) Sloan Ratio % : 0.00% (As of Sep. 2022)


View and export this data going back to 2021. Start your Free Trial

What is Build Acquisition Sloan Ratio %?

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.

Build Acquisition's Sloan Ratio for the quarter that ended in Sep. 2022 was 0.00%.

Warning Sign:

When sloan ratio (99.58)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.

As of Sep. 2022, Build Acquisition has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.


Build Acquisition Sloan Ratio % Historical Data

The historical data trend for Build Acquisition'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.

Build Acquisition Sloan Ratio % Chart

Build Acquisition Annual Data
Trend Dec21
Sloan Ratio %
99.58

Build Acquisition Quarterly Data
Jan21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Sloan Ratio % Get a 7-Day Free Trial - - - - -

Competitive Comparison of Build Acquisition's Sloan Ratio %

For the Shell Companies subindustry, Build Acquisition'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.


Build Acquisition's Sloan Ratio % Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Build Acquisition's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Build Acquisition's Sloan Ratio % falls into.



Build Acquisition 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.

Build Acquisition's Sloan Ratio for the fiscal year that ended in Dec. 2021 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2021 )-Cash Flow from Operations (A: Dec. 2021 )
-Cash Flow from Investing (A: Dec. 2021 ))/Total Assets (A: Dec. 2021 )
=(-0.855--0.993
--200)/200.989
=99.58%

Build Acquisition's Sloan Ratio for the quarter that ended in Sep. 2022 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Sep. 2022 )
=(6.093--0.931
-0)/201.699
=3.48%

Build Acquisition's Net Income for the trailing twelve months (TTM) ended in Sep. 2022 was -0.93 (Dec. 2021 ) + 4.163 (Mar. 2022 ) + 1.811 (Jun. 2022 ) + 1.049 (Sep. 2022 ) = $6.09 Mil.
Build Acquisition's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2022 was -0.156 (Dec. 2021 ) + -0.354 (Mar. 2022 ) + -0.218 (Jun. 2022 ) + -0.203 (Sep. 2022 ) = $-0.93 Mil.
Build Acquisition's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2022 was 0 (Dec. 2021 ) + 0 (Mar. 2022 ) + 0 (Jun. 2022 ) + 0 (Sep. 2022 ) = $0.00 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.


Build Acquisition  (NYSE:BGSX.U) 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 Sep. 2022, Build Acquisition has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.


Build Acquisition Sloan Ratio % Related Terms

Thank you for viewing the detailed overview of Build Acquisition's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.


Build Acquisition Business Description

Traded in Other Exchanges
N/A
Address
3500 Jefferson, Suite 303, Austin, TX, USA, 78731
Build Acquisition Corp is a blank check company.
Executives
A Lanham Napier director, 10 percent owner, officer: Co-Chief Executive Officer 701 W. CASTANO, SAN ANTONIO TX 78209
Natta Owen Van director 394 PACIFIC AVENUE, 2ND FLOOR, SAN FRANCISCO CA 94111
James C. Weaver director C/O KB HOME, 10990 WILSHIRE BLVD., 7TH FLOOR, LOS ANGELES CA 90024
Zeynep Young director, officer: Co-Chief Executive Officer 825 MAIN ST., SUITE 100, BUDA TX 78610
Tanner Cerand officer: See Remarks 3500 JEFFERSON STREET, STE 303, AUSTIN TX 78731
Build Acquisition Sponsor Llc 10 percent owner 3500 JEFFERSON STREET, STE 303, AUSTIN TX 78731
Noam Ohana director 16A AHAVAT TZION, TEL-AVIV L3 6215315

Build Acquisition Headlines

From GuruFocus