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.
Reliance Worldwide's Sloan Ratio for the quarter that ended in Dec. 2024 was -0.05%.
As of Dec. 2024, Reliance Worldwide has a Sloan Ratio of -0.05%, indicating the company is in the safe zone and there is no funny business with accruals.
Reliance Worldwide Sloan Ratio % Historical Data
The historical data trend for Reliance Worldwide'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 Reliance Worldwide's Sloan Ratio %
For the Building Products & Equipment subindustry, Reliance Worldwide'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.
Reliance Worldwide's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Reliance Worldwide's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Reliance Worldwide'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.
Reliance Worldwide's Sloan Ratio for the fiscal year that ended in Jun. 2024 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Reliance Worldwide's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was 59.118 (Jun. 2024 ) + 67.192 (Dec. 2024 ) = $126 Mil.
Reliance Worldwide's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was 152.36 (Jun. 2024 ) + 108.744 (Dec. 2024 ) = $261 Mil.
Reliance Worldwide's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -119.181 (Jun. 2024 ) + -14.541 (Dec. 2024 ) = $-134 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.
Reliance Worldwide (OTCPK:RLLWF) 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. 2024, Reliance Worldwide has a Sloan Ratio of -0.05%, indicating the company is in the safe zone and there is no funny business with accruals.
Reliance Worldwide Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Reliance Worldwide's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Reliance manufactures behind-the-wall plumbing products, which include fittings, pipes, valves, fluid dispensers, pipe systems, and appliance connectors. Its main segment is the US, which comprises about three fourths of our midcycle EBITDA estimates. Other segments include EMEA and the Asia-Pacific, which contribute about 20% and less than 10%, respectively, of our midcycle EBITDA estimates. The firm is best known for its push-to-connect products, including the brands SharkBite in the US and John Guest in the United Kingdom. Reliance's primary target segment is the do-it-yourself market. Smaller sales segments include residential and commercial construction, and hot water system manufacturers, which use some Reliance products in manufacturing.
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