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.
Pacer International,'s Sloan Ratio for the quarter that ended in Dec. 2013 was -8.37%.
As of Dec. 2013, Pacer International, has a Sloan Ratio of -8.37%, indicating the company is in the safe zone and there is no funny business with accruals.
Pacer International, Sloan Ratio % Historical Data
The historical data trend for Pacer International,'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 Pacer International,'s Sloan Ratio %
For the Integrated Freight & Logistics subindustry, Pacer International,'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.
Pacer International,'s Sloan Ratio % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Pacer International,'s Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Pacer International,'s Sloan Ratio % falls into.
Pacer International, 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.
Pacer International,'s Sloan Ratio for the fiscal year that ended in Dec. 2013 is calculated as
Pacer International,'s Net Income for the trailing twelve months (TTM) ended in Dec. 2013 was 1.004 (Mar. 2013 ) + 1.44 (Jun. 2013 ) + 2.094 (Sep. 2013 ) + 1.46 (Dec. 2013 ) = €6.0 Mil.
Pacer International,'s Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2013 was 8.183 (Mar. 2013 ) + 0.606 (Jun. 2013 ) + 11.22 (Sep. 2013 ) + 5.548 (Dec. 2013 ) = €25.6 Mil.
Pacer International,'s Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2013 was -2.162 (Mar. 2013 ) + -1.289 (Jun. 2013 ) + -1.571 (Sep. 2013 ) + -0.73 (Dec. 2013 ) = €-5.8 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.
Pacer International, (FRA:PA1) 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 Dec. 2013, Pacer International, has a Sloan Ratio of -8.37%, indicating the company is in the safe zone and there is no funny business with accruals.
Pacer International, Sloan Ratio % Related Terms
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Pacer International, (FRA:PA1) Business Description
Pacer International, Inc., is an asset-light transportation and global logistics services provider. The Company provide its services from two operating segments, an intermodal segment, which provides intermodal transportation services mainly to beneficial cargo owners, transportation intermediaries and steamship lines who use intermodal transportation, and the logistics segment, which provides highway brokerage, supply chain management services, international freight forwarding, ocean shipping, and warehousing and distribution services to a wide variety of end-user customers. Intermodal segment offers full service door-to-door intermodal services to its customers, which include end-user customers, transportation intermediaries, such as intermodal marketing companies, and steamship lines. The Company logistics segment consists of: Highway brokerage services; International freight forwarding and NVOCC services; Warehousing and Distribution services; and Supply Chain Management services. The Company provides transportation and logistics services to many Fortune 500 and multi-national companies as well as to numerous other shippers and transportation third parties. The Company has direct sales and customer service representatives in its intermodal and logistics segments that sell and support its portfolio of services to a diverse customer base which includes beneficial cargo owners, steamship lines, truckload carriers, truck brokers, freight forwarders and other third party transportation service providers such as intermodal marketing companies, third-party logistics companies, and shippers' agents. The Company's main competitors are J.B. Hunt Transport, Schneider National, the Hub Group, C.H. Robinson, the supply chain solutions divisions of Ryder and Menlo Worldwide, Expeditors International and UTi Worldwide, Inc. The Company's facilities and operations are subject to federal, state and local environmental, hazardous materials transportation and occupational health and safety requirements, including those relating to the handling, labeling, shipping and transportation of hazardous materials, discharges of substances into the air, water and land, the handling, storage and disposal of wastes and the cleanup of properties affected by pollutants.
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