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.
Pall's Sloan Ratio for the quarter that ended in Apr. 2015 was 1.77%.
As of Apr. 2015, Pall has a Sloan Ratio of 1.77%, indicating the company is in the safe zone and there is no funny business with accruals.
Pall Sloan Ratio % Historical Data
The historical data trend for Pall'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 Specialty Industrial Machinery subindustry, Pall'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.
Pall's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Pall's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Pall's Sloan Ratio % falls into.
Pall 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.
Pall's Sloan Ratio for the fiscal year that ended in Jul. 2014 is calculated as
Pall's Net Income for the trailing twelve months (TTM) ended in Apr. 2015 was 979.902 (Jul. 2014 ) + 748.467 (Oct. 2014 ) + 729.165 (Jan. 2015 ) + 856.427 (Apr. 2015 ) = ARS3,313.96 Mil.
Pall's Cash Flow from Operations for the trailing twelve months (TTM) ended in Apr. 2015 was 1319.864 (Jul. 2014 ) + 971.159 (Oct. 2014 ) + 1068.093 (Jan. 2015 ) + 1088.43 (Apr. 2015 ) = ARS4,447.55 Mil.
Pall's Cash Flow from Investing for the trailing twelve months (TTM) ended in Apr. 2015 was -1231.336 (Jul. 2014 ) + -87.122 (Oct. 2014 ) + -143.969 (Jan. 2015 ) + -261.353 (Apr. 2015 ) = ARS-1,723.78 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.
Pall (BUE:PLL) 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 Apr. 2015, Pall has a Sloan Ratio of 1.77%, indicating the company is in the safe zone and there is no funny business with accruals.
Pall Sloan Ratio % Related Terms
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Pall Corporation is a New York corporation incorporated on July 31, 1946. The Company supplies filtration, separation and purification technologies. Its products are used to remove solid, liquid and gaseous contaminants from a variety of liquids and gases. Its serves its customers through two businesses: Life Sciences and Industrial. The Life Sciences business group is engaged in developing, manufacturing and selling products to customers in the BioPharmaceutical, Food & Beverage and Medical markets. The Industrial business group is engaged in developing, manufacturing and selling products to customers in the Process Technologies, Aerospace and Microelectronics markets. The Life Sciences technologies facilitate the process of drug discovery, development, regulatory validation and production, and are used in research laboratories, and the pharmaceutical and biotechnology industries. It also supplies products and technologies for food and beverage industries and in hospitals at the point of patient care. The Industrial segment provides enabling and process-enhancing technologies throughout the industrial marketplace. These include the Process Technologies, Aerospace and Microelectronics markets. It has the capability to provide customers with integrated solutions using its proprietary consumable filtration products for their process fluids. The Company's competition varies by product and application. Its competitors in the BioPharmaceuticals market include Merck Millipore (a division of Merck KGaA), The Sartorius Group and GE Healthcare (a unit of General Electric Company ("GE")). Its competitors in the Food & Beverage market include 3M Purification, Pentair, Inc., Filtrox Group, The Sartorius Group, Eaton Corporation and Parker Domnick Hunter (a division of Parker Hannifin). Its competitors in the Medical market include Merck Millipore, GE Healthcare, Teleflex Incorporated, Covidien plc and Intersurgical, Ltd. Its competitors in the Process Technologies market include CLARCOR Inc., Donaldson Company, Inc., Parker Hannifin Corporation, HYDAC International GmbH, GE Infrastructure (a unit of GE), Pentair, Inc., 3M Purification, U.S. Filter (a unit of Siemens AG) and ESCO Technologies Inc. Its competitors in the Aerospace market include Donaldson Company, Inc. and ESCO Technologies Inc. Its competitors in the Microelectronics market include Entegris, Inc., Parker Hannifin Corporation and Mott Corporation. The Company is subject to competition in all of the global markets in which it operates.
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