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.
Konecranes Oyj's Sloan Ratio for the quarter that ended in Mar. 2024 was -2.87%.
As of Mar. 2024, Konecranes Oyj has a Sloan Ratio of -2.87%, indicating the company is in the safe zone and there is no funny business with accruals.
Konecranes Oyj Sloan Ratio % Historical Data
The historical data trend for Konecranes Oyj'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 Konecranes Oyj's Sloan Ratio %
For the Farm & Heavy Construction Machinery subindustry, Konecranes Oyj'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.
Konecranes Oyj's Sloan Ratio % Distribution in the Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Konecranes Oyj's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Konecranes Oyj's Sloan Ratio % falls into.
Konecranes Oyj 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.
Konecranes Oyj's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Konecranes Oyj's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 61.322 (Jun. 2023 ) + 74.6 (Sep. 2023 ) + 105.125 (Dec. 2023 ) + 64.457 (Mar. 2024 ) = $306 Mil.
Konecranes Oyj's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 134.886 (Jun. 2023 ) + 131.483 (Sep. 2023 ) + 197.383 (Dec. 2023 ) + 67.065 (Mar. 2024 ) = $531 Mil.
Konecranes Oyj's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -43.012 (Jun. 2023 ) + -9.072 (Sep. 2023 ) + -15.921 (Dec. 2023 ) + -14.022 (Mar. 2024 ) = $-82 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.
Konecranes Oyj (OTCPK:KNCRF) 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, Konecranes Oyj has a Sloan Ratio of -2.87%, indicating the company is in the safe zone and there is no funny business with accruals.
Konecranes Oyj Sloan Ratio % Related Terms
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Konecranes Oyj (Konecranes Oyj) Business Description
Konecranes Oyj provides lifting equipment and services for manufacturing industries, shipyards, ports, and terminals. It offers cranes, material handling solutions, and other components geared toward transporting and organizing supplies. Workstation lifting systems, trucks, and various hoists include advanced technologies to increase control and equipment capabilities. Products are marketed through various brands, and sales offices are in multiple regions. The company's global service network provides a full range of service solutions, specialized maintenance, and modernization services for equipment and tools. Inspections, spare parts, and preventive maintenance programs enhance efficiencies and extend product lifecycles.
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