What is Westinghouse Air Brake Technologies 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.
As of Sep. 2024, Westinghouse Air Brake Technologies has a Sloan Ratio of -2.32%, indicating the company is in the safe zone and there is no funny business with accruals.
Westinghouse Air Brake Technologies Sloan Ratio % Historical Data
* 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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Westinghouse Air Brake Technologies Sloan Ratio % Chart
Competitive Comparison of Westinghouse Air Brake Technologies's Sloan Ratio %
For the Railroads subindustry, Westinghouse Air Brake Technologies'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.
Westinghouse Air Brake Technologies's Sloan Ratio % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Westinghouse Air Brake Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Westinghouse Air Brake Technologies's Sloan Ratio % falls into.
Westinghouse Air Brake Technologies 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.
Westinghouse Air Brake Technologies's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 3649.463 (Dec. 2023 ) + 4514.181 (Mar. 2024 ) + 5294.51 (Jun. 2024 ) + 5572.355 (Sep. 2024 ) = MXN19,031 Mil.
Westinghouse Air Brake Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 11644.334 (Dec. 2023 ) + 5543.149 (Mar. 2024 ) + 4305.224 (Jun. 2024 ) + 10672.143 (Sep. 2024 ) = MXN32,165 Mil.
Westinghouse Air Brake Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -2647.983 (Dec. 2023 ) + -315.329 (Mar. 2024 ) + -696.164 (Jun. 2024 ) + -964.825 (Sep. 2024 ) = MXN-4,624 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.
Westinghouse Air Brake Technologies (MEX:WAB) 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, Westinghouse Air Brake Technologies has a Sloan Ratio of -2.32%, indicating the company is in the safe zone and there is no funny business with accruals.
Westinghouse Air Brake Technologies Sloan Ratio % Related Terms
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Westinghouse Air Brake Technologies Business Description
Westinghouse Air Brake Technologies Corp is a provider of value-added, technology-based products and services for the freight rail and passenger transit industries, and the mining, marine, and industrial markets. It provides its products and services through two main business segments, Freight and Transit. The company generates maximum revenue from the Freight segment which manufactures new and modernized locomotives, provides aftermarket parts and services to existing locomotives; provides components to new and existing freight cars; builds new commuter locomotives; supplies rail control and infrastructure products including electronics, positive train control equipment, signal design and engineering services. Geographically, it generates a majority of its revenue from the United States.
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