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DXPE (DXP Enterprises) Sloan Ratio % : 10.10% (As of Sep. 2024)


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What is DXP Enterprises 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.

DXP Enterprises's Sloan Ratio for the quarter that ended in Sep. 2024 was 10.10%.

As of Sep. 2024, DXP Enterprises has a Sloan Ratio of 10.10%, indicating there is a warning stage of accrual build up.


DXP Enterprises Sloan Ratio % Historical Data

The historical data trend for DXP Enterprises'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.

DXP Enterprises Sloan Ratio % Chart

DXP Enterprises Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.26 -1.97 5.42 9.22 -1.25

DXP Enterprises Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.96 -1.25 1.42 6.35 10.10

Competitive Comparison of DXP Enterprises's Sloan Ratio %

For the Industrial Distribution subindustry, DXP Enterprises'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.


DXP Enterprises's Sloan Ratio % Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, DXP Enterprises's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where DXP Enterprises's Sloan Ratio % falls into.



DXP Enterprises 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.

DXP Enterprises's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2023 )-Cash Flow from Operations (A: Dec. 2023 )
-Cash Flow from Investing (A: Dec. 2023 ))/Total Assets (A: Dec. 2023 )
=(68.812-106.222
--22.647)/1177.436
=-1.25%

DXP Enterprises's Sloan Ratio for the quarter that ended in Sep. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Sep. 2024 )
=(65.132-112.515
--171.809)/1231.445
=10.10%

DXP Enterprises's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 16.006 (Dec. 2023 ) + 11.332 (Mar. 2024 ) + 16.693 (Jun. 2024 ) + 21.101 (Sep. 2024 ) = $65 Mil.
DXP Enterprises's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 42.447 (Dec. 2023 ) + 26.989 (Mar. 2024 ) + 14.735 (Jun. 2024 ) + 28.344 (Sep. 2024 ) = $113 Mil.
DXP Enterprises's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -6.696 (Dec. 2023 ) + -42.155 (Mar. 2024 ) + -88.581 (Jun. 2024 ) + -34.377 (Sep. 2024 ) = $-172 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.


DXP Enterprises  (NAS:DXPE) 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. 2024, DXP Enterprises has a Sloan Ratio of 10.10%, indicating there is a warning stage of accrual build up.


DXP Enterprises Sloan Ratio % Related Terms

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DXP Enterprises Business Description

Traded in Other Exchanges
Address
5301 Hollister, Houston, TX, USA, 77040
DXP Enterprises Inc is a distributor of products and services to industrial customers in the United States, Canada, Mexico, and Dubai. The company's reportable segments include Service Centers, Innovative Pumping Solutions and Supply Chain Services. It generates maximum revenue from the Service Centers segment. The company offers pumping solutions, supply chain services and maintenance, repair, operating and production services for rotating equipment, bearings and power transmissions, industrial supplies and safety products. DXP Enterprises serves the General Industrial, Oil & Gas, Food & Beverage, Water & Wastewater, Chemical, Transportation, Aerospace & Other.
Executives
Christopher T Gregory officer: Sr. Vice President 7272 PINEMONT DR, HOUSTON TX 77040
Paz Maestas officer: CMO & CTO 5301 HOLLISTER ST, HOUSTON TX 77040
John Jay Jeffery officer: Sr. V.P. 7272 PINEMONT DRIVE, HOUSTON TX 77040
David Molero Santos officer: CHIEF ACCOUNTING OFFICER 5301 HOLLISTER ST, HOUSTON TX 77040
Todd Hamlin officer: Sr. Vice President 7272 PINEMONT DRIVE, HOUSTON TX 77040
David R Little director, 10 percent owner, officer: Chairman & CEO 7272 PINEMONT DRIVE, HOUSTON TX 77040
Yee Kent Nee Hung officer: Sr. Vice President 7272 PINEMONT DRIVE, HOUSTON TX 77040
David C Vinson officer: Sr, V.P. Operations
Nicholas Little officer: CHIEF OPERATING OFFICER 5301 HOLLISTER ST, HOUSTON TX 77040
Karen Hoffman director 5301 HOLLISTER ST, HOUSTON TX 77040
Gene Padgett officer: SVP/Chief Accounting Officer VALMONT INDUSTRIES, INC., 15000 VALMONT PLAZA, OMAHA NE 68154
Joseph R Mannes director 4016 MCFARLIN BLVD, DALLAS TX 75205
Timothy P Halter director 174 FM 1830, ARGYLE TX 76226
David Patton director 7272 PINEMONT DR, HOUSTON TX 77040
Cletus Davis director