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.
As of Oct. 2019, Ecology and Environment has a Sloan Ratio of -2.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Ecology and Environment Sloan Ratio % Historical Data
* 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 Ecology and Environment's Sloan Ratio %
For the Waste Management subindustry, Ecology and Environment'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.
Ecology and Environment's Sloan Ratio % Distribution in the Waste Management Industry
For the Waste Management industry and Industrials sector, Ecology and Environment's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Ecology and Environment's Sloan Ratio % falls into.
Ecology and Environment 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.
Ecology and Environment's Sloan Ratio for the fiscal year that ended in Jul. 2019 is calculated as
Ecology and Environment's Net Income for the trailing twelve months (TTM) ended in Oct. 2019 was -0.309 (Jan. 2019 ) + -1.03 (Apr. 2019 ) + 0.905 (Jul. 2019 ) + -1.527 (Oct. 2019 ) = $-1.96 Mil.
Ecology and Environment's Cash Flow from Operations for the trailing twelve months (TTM) ended in Oct. 2019 was -1.609 (Jan. 2019 ) + -0.762 (Apr. 2019 ) + 4.235 (Jul. 2019 ) + -2.4 (Oct. 2019 ) = $-0.54 Mil.
Ecology and Environment's Cash Flow from Investing for the trailing twelve months (TTM) ended in Oct. 2019 was -0.094 (Jan. 2019 ) + -0.053 (Apr. 2019 ) + -0.12 (Jul. 2019 ) + -0.049 (Oct. 2019 ) = $-0.32 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.
Ecology and Environment (NAS:EEI) 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 Oct. 2019, Ecology and Environment has a Sloan Ratio of -2.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Ecology and Environment Sloan Ratio % Related Terms
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Ecology and Environment (Ecology and Environment) Business Description
Ecology and Environment Inc is an environmental consulting firm. The company's operating segments include its subsidiaries located in the United States, South America, and other foreign subsidiaries. It offers consulting services to commercial and government clients in a variety of service sectors which includes Government start contract, Government task order contracts, Energy, Natural resource management and restoration, Sustainability, Resiliency and climate adaptation, Water Resources, Planning, Emergency planning and management, Hazardous and radioactive material services, International, Regulatory compliance, and Contract backlog. The company generates its revenue from federal, state and local governments, domestic private clients, and private and governmental international clients.
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