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.
Spruce Power Holding's Sloan Ratio for the quarter that ended in Dec. 2024 was 8.10%.
As of Dec. 2024, Spruce Power Holding has a Sloan Ratio of 8.10%, indicating the company is in the safe zone and there is no funny business with accruals.
Spruce Power Holding Sloan Ratio % Historical Data
The historical data trend for Spruce Power Holding'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 Spruce Power Holding's Sloan Ratio %
For the Solar subindustry, Spruce Power Holding'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.
Spruce Power Holding's Sloan Ratio % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Spruce Power Holding's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Spruce Power Holding'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.
Spruce Power Holding's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
Spruce Power Holding's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was -2.454 (Mar. 2024 ) + -8.578 (Jun. 2024 ) + -53.529 (Sep. 2024 ) + -5.928 (Dec. 2024 ) = $-70.49 Mil.
Spruce Power Holding's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was -22.187 (Mar. 2024 ) + -5.115 (Jun. 2024 ) + -1.051 (Sep. 2024 ) + -13.458 (Dec. 2024 ) = $-41.81 Mil.
Spruce Power Holding's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was 5.691 (Mar. 2024 ) + 7.796 (Jun. 2024 ) + 9.911 (Sep. 2024 ) + -124.81 (Dec. 2024 ) = $-101.41 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.
Spruce Power Holding (NYSE:SPRU) 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, Spruce Power Holding has a Sloan Ratio of 8.10%, indicating the company is in the safe zone and there is no funny business with accruals.
Spruce Power Holding Sloan Ratio % Related Terms
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Spruce Power Holding Corp is a leading owner and operator of distributed solar energy assets across the United States (the U.S.), offering subscription-based services to approximately 75,000 home solar assets and customer contracts, making renewable energy more accessible to everyone. The Company's primary customers are homeowners and the Company's core solar service offerings generate revenues primarily through (i) the sale of electricity generated by its home solar energy systems to homeowners, (ii) third-party contracts to sell solar renewable energy credits (SRECs) generated by the solar energy systems for fixed prices and (iii) the servicing of those agreements for other institutional owners of home solar energy systems.
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