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.
LCI Industries's Sloan Ratio for the quarter that ended in Dec. 2023 was -12.82%.
As of Dec. 2023, LCI Industries has a Sloan Ratio of -12.82%, indicating there is a warning stage of accrual build up.
LCI Industries Sloan Ratio % Historical Data
The historical data trend for LCI Industries'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 LCI Industries's Sloan Ratio %
For the Recreational Vehicles subindustry, LCI Industries'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.
LCI Industries's Sloan Ratio % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, LCI Industries's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where LCI Industries's Sloan Ratio % falls into.
LCI Industries 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.
LCI Industries's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
LCI Industries's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 7.259 (Mar. 2023 ) + 33.426 (Jun. 2023 ) + 25.887 (Sep. 2023 ) + -2.377 (Dec. 2023 ) = $64 Mil.
LCI Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 74.676 (Mar. 2023 ) + 198.889 (Jun. 2023 ) + 115.698 (Sep. 2023 ) + 137.966 (Dec. 2023 ) = $527 Mil.
LCI Industries's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -21.449 (Mar. 2023 ) + -34.14 (Jun. 2023 ) + -16.038 (Sep. 2023 ) + -12.121 (Dec. 2023 ) = $-84 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.
LCI Industries (NYSE:LCII) 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. 2023, LCI Industries has a Sloan Ratio of -12.82%, indicating there is a warning stage of accrual build up.
LCI Industries Sloan Ratio % Related Terms
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LCI Industries (LCI Industries) Business Description
LCI Industries Inc supplies domestically and internationally components for the original equipment manufacturers of recreational vehicles and adjacent industries including buses; trailers used to haul boats, livestock, equipment and other cargo. It has two reportable segments the original equipment manufacturers segment and the aftermarket segment. The OEM Segment manufactures or distributes components for the OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment and other cargo; trucks; pontoon boats; trains; manufactured homes; and modular housing. Its products are sold primarily to major manufacturers of RVs such as Thor Industries, Forest River, Winnebago and other RV OEMs, and to manufacturers in adjacent industries.
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