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 Mar. 2023, Evoqua Water Technologies has a Sloan Ratio of 1.05%, indicating the company is in the safe zone and there is no funny business with accruals.
Evoqua Water Technologies 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 Evoqua Water Technologies's Sloan Ratio %
For the Pollution & Treatment Controls subindustry, Evoqua Water Technologies'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.
Evoqua Water Technologies's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Evoqua Water Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Evoqua Water Technologies's Sloan Ratio % falls into.
Evoqua Water Technologies 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.
Evoqua Water Technologies's Sloan Ratio for the fiscal year that ended in Sep. 2022 is calculated as
Evoqua Water Technologies's Net Income for the trailing twelve months (TTM) ended in Mar. 2023 was 16.615 (Jun. 2022 ) + 41.731 (Sep. 2022 ) + 8.749 (Dec. 2022 ) + 9.93 (Mar. 2023 ) = €77 Mil.
Evoqua Water Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2023 was 54.666 (Jun. 2022 ) + 95.413 (Sep. 2022 ) + -1.202 (Dec. 2022 ) + 33.12 (Mar. 2023 ) = €182 Mil.
Evoqua Water Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2023 was -32.364 (Jun. 2022 ) + -46.36 (Sep. 2022 ) + -19.326 (Dec. 2022 ) + -28.687 (Mar. 2023 ) = €-127 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.
Evoqua Water Technologies (FRA:E0W) 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 Mar. 2023, Evoqua Water Technologies has a Sloan Ratio of 1.05%, indicating the company is in the safe zone and there is no funny business with accruals.
Evoqua Water Technologies Sloan Ratio % Related Terms
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Evoqua Water Technologies (FRA:E0W) Business Description
Evoqua Water Technologies Corp is a provider of critical water treatment solutions, offering services, systems, and technologies to support its customers' full water lifecycle needs. The company operates two segments namely Integrated Solutions and Services and Applied Product Technologies. The Integrated Solutions and Services segment provides fully-integrated systems and service solutions that selectively utilize its portfolio of water treatment technologies to satisfy customers' water needs. It engages directly with end-users. Applied Product Technologies is focused on developing product platforms to be sold primarily through third-party channels. The company generates maximum revenue from the Integrated Solutions and Services segment.
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