GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Environmental Solutions Worldwide Inc (OTCPK:ESWW) » Definitions » Sloan Ratio %

Environmental Solutions Worldwide (Environmental Solutions Worldwide) Sloan Ratio % : 26.15% (As of Dec. 2014)


View and export this data going back to . Start your Free Trial

What is Environmental Solutions Worldwide 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.

Environmental Solutions Worldwide's Sloan Ratio for the quarter that ended in Dec. 2014 was 26.15%.

As of Dec. 2014, Environmental Solutions Worldwide has a Sloan Ratio of 26.15%, indicating earnings are more likely to be made up of accruals.


Environmental Solutions Worldwide Sloan Ratio % Historical Data

The historical data trend for Environmental Solutions Worldwide'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.

Environmental Solutions Worldwide Sloan Ratio % Chart

Environmental Solutions Worldwide Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -34.23 -95.79 -1.68 15.31 26.15

Environmental Solutions Worldwide Quarterly Data
Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14
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 15.30 8.50 19.72 -19.27 26.15

Competitive Comparison of Environmental Solutions Worldwide's Sloan Ratio %

For the Auto Parts subindustry, Environmental Solutions Worldwide'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.


Environmental Solutions Worldwide's Sloan Ratio % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Environmental Solutions Worldwide's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Environmental Solutions Worldwide's Sloan Ratio % falls into.



Environmental Solutions Worldwide 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.

Environmental Solutions Worldwide's Sloan Ratio for the fiscal year that ended in Dec. 2014 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2014 )-Cash Flow from Operations (A: Dec. 2014 )
-Cash Flow from Investing (A: Dec. 2014 ))/Total Assets (A: Dec. 2014 )
=(11.462-5.241
--0.797)/26.841
=26.15%

Environmental Solutions Worldwide's Sloan Ratio for the quarter that ended in Dec. 2014 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Dec. 2014 )
=(11.462-5.241
--0.798)/26.841
=26.15%

Environmental Solutions Worldwide's Net Income for the trailing twelve months (TTM) ended in Dec. 2014 was 0.421 (Mar. 2014 ) + 1.331 (Jun. 2014 ) + -0.973 (Sep. 2014 ) + 10.683 (Dec. 2014 ) = $11.46 Mil.
Environmental Solutions Worldwide's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2014 was 1.835 (Mar. 2014 ) + 0.903 (Jun. 2014 ) + 2.28 (Sep. 2014 ) + 0.223 (Dec. 2014 ) = $5.24 Mil.
Environmental Solutions Worldwide's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2014 was -0.176 (Mar. 2014 ) + -0.162 (Jun. 2014 ) + -0.213 (Sep. 2014 ) + -0.247 (Dec. 2014 ) = $-0.80 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.


Environmental Solutions Worldwide  (OTCPK:ESWW) 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 Dec. 2014, Environmental Solutions Worldwide has a Sloan Ratio of 26.15%, indicating earnings are more likely to be made up of accruals.


Environmental Solutions Worldwide Sloan Ratio % Related Terms

Thank you for viewing the detailed overview of Environmental Solutions Worldwide's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.


Environmental Solutions Worldwide (Environmental Solutions Worldwide) Business Description

Traded in Other Exchanges
N/A
Address
200 Progress Drive, Montgomerville, PA, USA, 18936
Environmental Solutions Worldwide Inc through its subsidiaries is involved in the designing, development, manufacturing, and sales of emissions control technologies. It also provides emissions testing and environmental certification services. The firm's products include horizondpf, longview dpf, and vista dpf. It has Air testing services and MHDD diesel emission control manufacturing and sales operating segments. The company derives the majority of its revenues from MHDD diesel control segment.
Executives
John J Suydam director C/O APOLLO MANAGEMENT LP, 9 WEST 57TH STREET, 43RD FLOOR, NEW YORK NY 10019
Joshua Black director C/O APOLLO MANAGEMENT LP, 9 WEST 57TH STREET, 43RD FLOOR, NEW YORK NY 10019
Mark Yung director, other: Remarks C/O 335 CONNIE CRESENT, CONCORD A6 L4K 5R2
John J Hannan director 9 WEST 57TH STREET, NEW YORK NY 10019
Leon D Black 10 percent owner APOLLO ADVISORS LP, 1301 AVENOE OF THE AMERICAS, NEW YORK NY 10019
Richard S Ressler other: See Remarks C/O J2 GLOBAL COMMUNICATIONS, INC., 6922 HOLLYWOOD BLVD, 5TH FLOOR, LOS ANGELES CA 90028
Peter D. Bloch director 483 BAY STREET, N105, TORONTO A6 M5G2C9
Elbert O Hand director C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143

Environmental Solutions Worldwide (Environmental Solutions Worldwide) Headlines

No Headlines