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.
Correlate Energy's Sloan Ratio for the quarter that ended in Mar. 2024 was -350.85%.
Warning Sign:
When sloan ratio (-215.96)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Mar. 2024, Correlate Energy has a Sloan Ratio of -350.85%, indicating earnings are more likely to be made up of accruals.
Correlate Energy Sloan Ratio % Historical Data
The historical data trend for Correlate Energy'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 Correlate Energy's Sloan Ratio %
For the Engineering & Construction subindustry, Correlate Energy'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.
Correlate Energy's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Correlate Energy's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Correlate Energy's Sloan Ratio % falls into.
Correlate Energy 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.
Correlate Energy's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Correlate Energy's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -1.569 (Jun. 2023 ) + -3.384 (Sep. 2023 ) + -4.425 (Dec. 2023 ) + -4.476 (Mar. 2024 ) = $-13.85 Mil.
Correlate Energy's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 0.4 (Jun. 2023 ) + 1.273 (Sep. 2023 ) + -2.984 (Dec. 2023 ) + -1.276 (Mar. 2024 ) = $-2.59 Mil.
Correlate Energy's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -0.443 (Jun. 2023 ) + -0.023 (Sep. 2023 ) + -0.072 (Dec. 2023 ) + -0.035 (Mar. 2024 ) = $-0.57 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.
Correlate Energy (OTCPK:CIPI) 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 Mar. 2024, Correlate Energy has a Sloan Ratio of -350.85%, indicating earnings are more likely to be made up of accruals.
Correlate Energy Sloan Ratio % Related Terms
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Correlate Energy (Correlate Energy) Business Description
Correlate Energy Corp Formerly Correlate Infrastructure Partners Inc, together with its subsidiaries, is a technology-enabled clean energy optimization provider that offers a complete suite of proprietary clean energy assessment and deployment solutions for commercial and industrial (C&I) building and property owners in the United States. Through the company's true tech-enabled project development and financing platform, it provides portfolio energy optimization and clean energy solutions for sustainable profit growth in buildings nationwide.
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