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.
Senior's Sloan Ratio for the quarter that ended in Jun. 2024 was 3.95%.
As of Jun. 2024, Senior has a Sloan Ratio of 3.95%, indicating the company is in the safe zone and there is no funny business with accruals.
Senior Sloan Ratio % Historical Data
The historical data trend for Senior'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.
For the Aerospace & Defense subindustry, Senior'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.
Senior's Sloan Ratio % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Senior's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Senior's Sloan Ratio % falls into.
Senior 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.
Senior's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Senior's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was 24.684 (Dec. 2023 ) + 13.868 (Jun. 2024 ) = $39 Mil.
Senior's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was 54.557 (Dec. 2023 ) + 18.321 (Jun. 2024 ) = $73 Mil.
Senior's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was -54.937 (Dec. 2023 ) + -29.135 (Jun. 2024 ) = $-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.
Senior (OTCPK:SNIRF) 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 Jun. 2024, Senior has a Sloan Ratio of 3.95%, indicating the company is in the safe zone and there is no funny business with accruals.
Senior Sloan Ratio % Related Terms
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Senior PLC produces technology components and systems for original equipment manufacturers in aerospace, defense, land vehicles, and energy markets. It is divided into two divisions: Aerospace and flexonics. Aerospace technology provides products and systems for demanding applications in aerospace & defense and adjacent markets, its products include fluid conveyance, and thermal management components. Flexonics provides technology products and systems for demanding applications in land vehicles, power & energy, and adjacent markets, its products include petrochemicals, renewable energy, and a variety of other industrial applications. Its operations are located in North America and Europe, and approximately half of the total revenue is derived from the United States.
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