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.
CPI Aerostructures's Sloan Ratio for the quarter that ended in Sep. 2024 was 22.09%.
As of Sep. 2024, CPI Aerostructures has a Sloan Ratio of 22.09%, indicating there is a warning stage of accrual build up.
CPI Aerostructures Sloan Ratio % Historical Data
The historical data trend for CPI Aerostructures'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 CPI Aerostructures's Sloan Ratio %
For the Aerospace & Defense subindustry, CPI Aerostructures'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.
CPI Aerostructures's Sloan Ratio % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, CPI Aerostructures's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where CPI Aerostructures's Sloan Ratio % falls into.
CPI Aerostructures 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.
CPI Aerostructures's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
CPI Aerostructures's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 14.759 (Dec. 2023 ) + 0.168 (Mar. 2024 ) + 1.41 (Jun. 2024 ) + 0.75 (Sep. 2024 ) = $17.09 Mil.
CPI Aerostructures's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 3.088 (Dec. 2023 ) + -0.961 (Mar. 2024 ) + -0.592 (Jun. 2024 ) + 0.715 (Sep. 2024 ) = $2.25 Mil.
CPI Aerostructures's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -0.047 (Dec. 2023 ) + -0.047 (Mar. 2024 ) + -0.155 (Jun. 2024 ) + -0.128 (Sep. 2024 ) = $-0.38 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.
CPI Aerostructures (AMEX:CVU) 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 Sep. 2024, CPI Aerostructures has a Sloan Ratio of 22.09%, indicating there is a warning stage of accrual build up.
CPI Aerostructures Sloan Ratio % Related Terms
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CPI Aerostructures Inc is engaged in the manufacturing of structural aircraft parts for fixed-wing aircraft and helicopters in both the commercial and defense markets in the United States. It also provides engineering, program management, supply chain management and kitting, and Maintenance Repair and Overhaul (MRO) services. CPI also acts as a subcontractor to prime aircraft manufacturers in the production of commercial aircraft parts. CPI Aero supplies the E-2D Advanced Hawkeye surveillance aircraft, the A-10 Thunderbolt attack jet, the Gulfstream G650, the UH-60 BLACK HAWK helicopter, and the S-92 helicopter and others.
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