What is California Water Service Group 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.
As of Sep. 2024, California Water Service Group has a Sloan Ratio of 7.08%, indicating the company is in the safe zone and there is no funny business with accruals.
California Water Service Group 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.
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California Water Service Group Sloan Ratio % Chart
Competitive Comparison of California Water Service Group's Sloan Ratio %
For the Utilities - Regulated Water subindustry, California Water Service 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.
California Water Service Group's Sloan Ratio % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, California Water Service Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where California Water Service Group's Sloan Ratio % falls into.
California Water Service 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.
California Water Service Group's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 27.627 (Dec. 2023 ) + 64.324 (Mar. 2024 ) + 37.672 (Jun. 2024 ) + 54.673 (Sep. 2024 ) = €184.3 Mil.
California Water Service Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 68.141 (Dec. 2023 ) + 24.394 (Mar. 2024 ) + 87.72 (Jun. 2024 ) + 91.761 (Sep. 2024 ) = €272.0 Mil.
California Water Service Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -100.68 (Dec. 2023 ) + -101.022 (Mar. 2024 ) + -97.136 (Jun. 2024 ) + -108.58 (Sep. 2024 ) = €-407.4 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.
California Water Service Group (FRA:WT5) 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 Sep. 2024, California Water Service Group has a Sloan Ratio of 7.08%, indicating the company is in the safe zone and there is no funny business with accruals.
California Water Service Group Sloan Ratio % Related Terms
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California Water Service Group Business Description
California Water Service Group is a U.S. water and utilities holding company based in California. The company engages in the production, treatment, storage, distribution, and sale of water for various uses. The firm operates through its subsidiaries, which can be divided between regulated and unregulated businesses. The regulated public utilities subsidiaries operate in California, New Mexico, Washington, and Hawaii. The unregulated subsidiaries provide water utility services to private companies and municipalities. The company derives the majority of its revenue from its operations in California and, overall, from residential customers.
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