Mister Car Wash (Mister Car Wash) Sloan Ratio % : 5.24% (As of Mar. 2024)

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What is Mister Car Wash 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.

Mister Car Wash's Sloan Ratio for the quarter that ended in Mar. 2024 was 5.24%.

As of Mar. 2024, Mister Car Wash has a Sloan Ratio of 5.24%, indicating the company is in the safe zone and there is no funny business with accruals.

Mister Car Wash Sloan Ratio % Historical Data

The historical data trend for Mister Car Wash'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.

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Mister Car Wash Sloan Ratio % Chart

Mister Car Wash Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Sloan Ratio %

3.88

-1.44

14.23

2.75

4.68

Mister Car Wash Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Sloan Ratio %	Get a 7-Day Free Trial													3.94	-0.04	3.72	4.68	5.24

Competitive Comparison of Mister Car Wash's Sloan Ratio %

For the Personal Services subindustry, Mister Car Wash'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.

Mister Car Wash's Sloan Ratio % Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, Mister Car Wash's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Mister Car Wash's Sloan Ratio % falls into.

Mister Car Wash 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.

Mister Car Wash's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (A: Dec. 2023 )	-	Cash Flow from Operations (A: Dec. 2023 )
	-	Cash Flow from Investing (A: Dec. 2023 ))	/	Total Assets (A: Dec. 2023 )
	=	(80.13	-	204.653
	-	-259.365)	/	2881.536
	=	4.68%

Mister Car Wash's Sloan Ratio for the quarter that ended in Mar. 2024 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Mar. 2024 )
	=	(75.631	-	195.626
	-	-273.149)	/	2925.261
	=	5.24%

Mister Car Wash's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 27.132 (Jun. 2023 ) + 19.485 (Sep. 2023 ) + 12.377 (Dec. 2023 ) + 16.637 (Mar. 2024 ) = $75.6 Mil.
Mister Car Wash's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 50.105 (Jun. 2023 ) + 48.364 (Sep. 2023 ) + 39.167 (Dec. 2023 ) + 57.99 (Mar. 2024 ) = $195.6 Mil.
Mister Car Wash's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 12.929 (Jun. 2023 ) + -123.421 (Sep. 2023 ) + -85.713 (Dec. 2023 ) + -76.944 (Mar. 2024 ) = $-273.1 Mil.

Mister Car Wash (NYSE:MCW) 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.

According to How to Beat the Market with the Sloan Ratio:

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, Mister Car Wash has a Sloan Ratio of 5.24%, indicating the company is in the safe zone and there is no funny business with accruals.

Mister Car Wash Sloan Ratio % Related Terms

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Mister Car Wash (Mister Car Wash) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Personal Services » Mister Car Wash Inc (NYSE:MCW) » Definitions » Sloan Ratio %

Comparable Companies

Traded in Other Exchanges

N/A

Address

222 E 5th Street, Tucson, AZ, USA, 85705

Website

https://www.mistercarwash.com

Mister Car Wash Inc is a car wash brand offering express exterior and interior cleaning services. Express Exterior Locations offers express exterior cleaning services and Interior Cleaning Locations offers both express exterior and interior cleaning services. The company recognizes revenue in two main streams. It offers an Unlimited Wash Club (UWC) program to its customers. The UWC program entitles the customer to unlimited washes for a monthly fee, cancellable at any time. Second, revenue from the car wash and quick lube services.

Executives

Joseph Duane Matheny	officer: See Remarks	C/O MISTER CAR WASH, INC., 222 E 5TH STREET, TUCSON AZ 85705
Markus Hartmann	officer: General Counsel	968 JAMES STREET, SYRACUSE NY 13203
John Lo-minn Lai	director, officer: Chief Executive Officer	C/O MISTER CAR WASH, INC., 222 E 5TH STREET, TUCSON AZ 85705
Myra I. Chimienti	officer: See Remarks	C/O MISTER CAR WASH, INC., 222 E 5TH STREET, TUCSON AZ 85705
Jedidiah Marc Gold	officer: Chief Financial Officer	C/O MISTER CAR WASH, INC., 222 E 5TH STREET, TUCSON AZ 85705
Mary Lyn Porter	officer: Chief People Officer	C/O MISTER CAR WASH, INC., 222 E 5TH STREET, TUCSON AZ 85705
Casey Penn Lindsay	officer: See Remarks	C/O MISTER CAR WASH, INC., 222 E 5TH STREET, TUCSON AZ 85705
Lisa Bossard Funk	officer: General Counsel	C/O MISTER CAR WASH, INC., 222 E 5TH STREET, TUCSON AZ 85705
Veronica Rogers	director	C/O MISTER CAR WASH, INC., 222 E 5TH STREET, TUCSON AZ 85705
Ronald Kirk	director	TEXAS INSTRUMENTS INCORPORATED, 12500 TI BOULEVARD MS 3999, DALLAS TX 75243
Green Equity Investors Vi, L.p.	director, 10 percent owner	11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025
John Kristofer Galashan	director, 10 percent owner	LEONARD, GREEN & PARTNERS, 11111 SANTA MONICA BLVD., SUITE 2000, LOS ANGELES CA 90025
Lgp Associates Vi-a Llc	director, 10 percent owner	11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025
Susan E Docherty	director	THE BRINK'S COMPANY, 1801 BAYBERRY COURT, 4TH FLOOR, RICHMOND VA 23226
Lgp Associates Vi-b Llc	director, 10 percent owner	11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025