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. 2023, Clean Energy Special Situations has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Clean Energy Special Situations (OTCPK:SWSSW) 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. 2023, Clean Energy Special Situations has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Clean Energy Special Situations Sloan Ratio % Related Terms
Clean Energy Special Situations 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.
Clean Energy Special Situations Sloan Ratio % Chart
SWSSW vs CREEF, AEAE, GGAAF: Sloan Ratio % Comparison
For the Shell Companies subindustry, Clean Energy Special Situations'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.
Clean Energy Special Situations Sloan Ratio % vs Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, Clean Energy Special Situations's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Clean Energy Special Situations's Sloan Ratio % falls into.
Clean Energy Special Situations 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.
Clean Energy Special Situations's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was 0.651 (Dec. 2022 ) + 0.609 (Mar. 2023 ) + -0.133 (Jun. 2023 ) + -0.207 (Sep. 2023 ) = $0.92 Mil.
Clean Energy Special Situations's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was -0.05 (Dec. 2022 ) + -0.102 (Mar. 2023 ) + -0.722 (Jun. 2023 ) + -0.103 (Sep. 2023 ) = $-0.98 Mil.
Clean Energy Special Situations's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was 0 (Dec. 2022 ) + 155.971 (Mar. 2023 ) + 0.464 (Jun. 2023 ) + 3.415 (Sep. 2023 ) = $159.85 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.
Clean Energy Special Situations (SWSSW) has a Sloan Ratio % of 0.00% as of Sep. 2023. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Clean Energy Special Situations and its competitors.
Is Clean Energy Special Situations' Sloan Ratio % too high?
Clean Energy Special Situations' current Sloan Ratio % is 0.00%. Overall, Clean Energy Special Situations has a GF Score™ of 31/100, reflecting its overall financial health beyond just this single metric.
How does Clean Energy Special Situations' Sloan Ratio % compare to CREEF and AEAE?
Clean Energy Special Situations' Sloan Ratio % of 0.00% can be compared against companies in the Diversified Financial Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Diversified Financial Services company?
A good Sloan Ratio % depends on the Diversified Financial Services industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Clean Energy Special Situations and its competitors. Clean Energy Special Situations's current Sloan Ratio % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Clean Energy Special Situations stock overvalued right now?
Clean Energy Special Situations (SWSSW) has a current Sloan Ratio % of 0.00%. The current Sloan Ratio % is 0.00%. Clean Energy Special Situations' overall GF Score™ is 31/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Clean Energy Special Situations (SWSSW), the current Sloan Ratio % is 0.00% as of Sep. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Clean Energy Special Situations Business Description
Clean Energy Special Situations Corp Formerly Springwater Special Situations Corp is a blank check company formed for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities.
31GF Score
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