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.
Enerpac Tool Group's Sloan Ratio for the quarter that ended in Aug. 2024 was 2.36%.
As of Aug. 2024, Enerpac Tool Group has a Sloan Ratio of 2.36%, indicating the company is in the safe zone and there is no funny business with accruals.
Enerpac Tool Group Sloan Ratio % Historical Data
The historical data trend for Enerpac Tool Group'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 Enerpac Tool Group's Sloan Ratio %
For the Specialty Industrial Machinery subindustry, Enerpac Tool Group'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.
Enerpac Tool Group's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Enerpac Tool Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Enerpac Tool Group's Sloan Ratio % falls into.
Enerpac Tool Group 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.
Enerpac Tool Group's Sloan Ratio for the fiscal year that ended in Aug. 2024 is calculated as
Enerpac Tool Group's Net Income for the trailing twelve months (TTM) ended in Aug. 2024 was 17.738 (Nov. 2023 ) + 17.817 (Feb. 2024 ) + 25.778 (May. 2024 ) + 24.416 (Aug. 2024 ) = $85.7 Mil.
Enerpac Tool Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Aug. 2024 was -6.675 (Nov. 2023 ) + 13.327 (Feb. 2024 ) + 30.306 (May. 2024 ) + 44.361 (Aug. 2024 ) = $81.3 Mil.
Enerpac Tool Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Aug. 2024 was -2.594 (Nov. 2023 ) + -3.093 (Feb. 2024 ) + -1.818 (May. 2024 ) + -6.441 (Aug. 2024 ) = $-13.9 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.
Enerpac Tool Group (NYSE:EPAC) 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 Aug. 2024, Enerpac Tool Group has a Sloan Ratio of 2.36%, indicating the company is in the safe zone and there is no funny business with accruals.
Enerpac Tool Group Sloan Ratio % Related Terms
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Enerpac Tool Group provides high-precision tools, controlled-force products, and solutions for precise heavy lifting. The company has one reportable segment, the Industrial Tools & Services (IT&S) Segment. The IT&S segment is primarily engaged in the design, manufacture, and distribution of branded hydraulic and mechanical tools and in providing services and tool rental to the refinery/petrochemical; general industrial; industrial maintenance, repair, and operations (MRO); machining & manufacturing; power generation; infrastructure; mining; and other markets. Geographically, the company has operations in Algeria, Australia, Brazil, France, Germany, Kazakhstan, India, Italy, Japan, Norway, Poland, Saudi Arabia, Singapore, South Africa, South Korea, Spain, and the United Arab Emirates.
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