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.
FTAI Aviation's Sloan Ratio for the quarter that ended in Mar. 2024 was 21.86%.
As of Mar. 2024, FTAI Aviation has a Sloan Ratio of 21.86%, indicating there is a warning stage of accrual build up.
FTAI Aviation Sloan Ratio % Historical Data
The historical data trend for FTAI Aviation'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 FTAI Aviation's Sloan Ratio %
For the Rental & Leasing Services subindustry, FTAI Aviation'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.
FTAI Aviation's Sloan Ratio % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, FTAI Aviation's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where FTAI Aviation's Sloan Ratio % falls into.
FTAI Aviation 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.
FTAI Aviation's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
FTAI Aviation's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 54.753 (Jun. 2023 ) + 41.307 (Sep. 2023 ) + 118.36 (Dec. 2023 ) + 39.622 (Mar. 2024 ) = $254.04 Mil.
FTAI Aviation's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 28.544 (Jun. 2023 ) + 49.525 (Sep. 2023 ) + 12.216 (Dec. 2023 ) + -0.345 (Mar. 2024 ) = $89.94 Mil.
FTAI Aviation's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -89.523 (Jun. 2023 ) + -89.246 (Sep. 2023 ) + -182.257 (Dec. 2023 ) + -169.213 (Mar. 2024 ) = $-530.24 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.
FTAI Aviation (NAS:FTAIP.PFD) 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. 2024, FTAI Aviation has a Sloan Ratio of 21.86%, indicating there is a warning stage of accrual build up.
FTAI Aviation Sloan Ratio % Related Terms
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FTAI Aviation (FTAI Aviation) Business Description
FTAI Aviation Ltd is a aerospace company .It owns and maintains commercial jet engines with a focus on CFM56 engines. FTAI owns and leases jet aircraft which often facilitates the acquisition of engines at attractive prices. It invests in aviation assets and aerospace products that generate strong and stable cash flows with the potential for earnings growth and asset appreciation.
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