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.
Supreme Industries's Sloan Ratio for the quarter that ended in Jun. 2017 was -7.21%.
As of Jun. 2017, Supreme Industries has a Sloan Ratio of -7.21%, indicating the company is in the safe zone and there is no funny business with accruals.
Supreme Industries Sloan Ratio % Historical Data
The historical data trend for Supreme Industries'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 Supreme Industries's Sloan Ratio %
For the Trucking subindustry, Supreme Industries'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.
Supreme Industries's Sloan Ratio % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Supreme Industries's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Supreme Industries's Sloan Ratio % falls into.
Supreme Industries 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.
Supreme Industries's Sloan Ratio for the fiscal year that ended in Dec. 2016 is calculated as
Supreme Industries's Net Income for the trailing twelve months (TTM) ended in Jun. 2017 was 4.997 (Sep. 2016 ) + 1.984 (Dec. 2016 ) + 1.863 (Mar. 2017 ) + 6.302 (Jun. 2017 ) = $15.1 Mil.
Supreme Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2017 was 17.06 (Sep. 2016 ) + 13.682 (Dec. 2016 ) + -21.848 (Mar. 2017 ) + 17.108 (Jun. 2017 ) = $26.0 Mil.
Supreme Industries's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2017 was -0.988 (Sep. 2016 ) + -1.301 (Dec. 2016 ) + -1.619 (Mar. 2017 ) + 3.107 (Jun. 2017 ) = $-0.8 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.
Supreme Industries (AMEX:STS) 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. 2017, Supreme Industries has a Sloan Ratio of -7.21%, indicating the company is in the safe zone and there is no funny business with accruals.
Supreme Industries Sloan Ratio % Related Terms
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Supreme Industries (Supreme Industries) Business Description
Supreme Industries Inc is an US-based company which manufactures auto parts for commercial vehicles like trucks, trolleys and specialty vehicles used for transportation of goods. It also manufactures fiberglass products. The comany sells specialized trucks by installing customized truck bodies for dry freight services, refrigerated transportation and platform frames. The truck bodies are made up of aluminum, FiberPanel PW branded plywood and FiberPanel HC branded honeycomb. The comapny operates through two business segments Specialized commercial vehicles and Fiberglass products. Majority of its revenue is generated from sale of specialized trucks business.
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