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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.
The Lion Electric Co's Sloan Ratio for the quarter that ended in Sep. 2024 was -2.85%.
As of Sep. 2024, The Lion Electric Co has a Sloan Ratio of -2.85%, indicating the company is in the safe zone and there is no funny business with accruals.
The Lion Electric Co (OTCPK:LEVGQ) 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, The Lion Electric Co has a Sloan Ratio of -2.85%, indicating the company is in the safe zone and there is no funny business with accruals.
The Lion Electric Co Sloan Ratio % Related Terms
The Lion Electric Co Sloan Ratio % Historical Data
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The historical data trend for The Lion Electric Co'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.
LEVGQ vs UGRO, NKLAQ, ARTW: Sloan Ratio % Comparison
For the Farm & Heavy Construction Machinery subindustry, The Lion Electric Co'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.
The Lion Electric Co Sloan Ratio % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, The Lion Electric Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where The Lion Electric Co's Sloan Ratio % falls into.
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.
The Lion Electric Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
The Lion Electric Co's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was -56.543 (Dec. 2023 ) + -21.697 (Mar. 2024 ) + -19.265 (Jun. 2024 ) + -33.946 (Sep. 2024 ) = $-131.5 Mil.
The Lion Electric Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was -23.79 (Dec. 2023 ) + -43.7 (Mar. 2024 ) + -9.007 (Jun. 2024 ) + 21.138 (Sep. 2024 ) = $-55.4 Mil.
The Lion Electric Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -27.15 (Dec. 2023 ) + -11.809 (Mar. 2024 ) + -11.615 (Jun. 2024 ) + -3.276 (Sep. 2024 ) = $-53.9 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.
The Lion Electric Co (LEVGQ) has a Sloan Ratio % of -2.85% as of Sep. 2024. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on The Lion Electric Co and its competitors.
Is The Lion Electric Co's Sloan Ratio % too high?
The Lion Electric Co's current Sloan Ratio % is -2.85%. Overall, The Lion Electric Co has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does The Lion Electric Co's Sloan Ratio % compare to UGRO and NKLAQ?
The Lion Electric Co's Sloan Ratio % of -2.85% can be compared against companies in the Farm & Heavy Construction Machinery industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Farm & Heavy Construction Machinery company?
A good Sloan Ratio % depends on the Farm & Heavy Construction Machinery industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on The Lion Electric Co and its competitors. The Lion Electric Co's current Sloan Ratio % is -2.85%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Lion Electric Co stock overvalued right now?
The Lion Electric Co (LEVGQ) has a current Sloan Ratio % of -2.85%. The current Sloan Ratio % is -2.85%. The Lion Electric Co's overall GF Score™ is 12/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For The Lion Electric Co (LEVGQ), the current Sloan Ratio % is -2.85% as of Sep. 2024. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
The Lion Electric Co. includes designing, developing, manufacturing and distributing purpose-built all-electric medium and heavy-duty urban vehicles including battery systems, chassis, bus bodies and truck cabins. The Group also distributes truck and bus parts and accessories. The Group has one reportable operating segment, the manufacturing and sales of electric vehicles in Canada and in the United States. Geographically, the majority of revenue is generated from Canada.
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