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SWX (Southwest Gas Holdings) Sloan Ratio % : -3.30% (As of Sep. 2024)


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What is Southwest Gas Holdings Sloan Ratio %?

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.

Southwest Gas Holdings's Sloan Ratio for the quarter that ended in Sep. 2024 was -3.30%.

As of Sep. 2024, Southwest Gas Holdings has a Sloan Ratio of -3.30%, indicating the company is in the safe zone and there is no funny business with accruals.


Southwest Gas Holdings Sloan Ratio % Historical Data

The historical data trend for Southwest Gas Holdings'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.

* Premium members only.

Southwest Gas Holdings Sloan Ratio % Chart

Southwest Gas Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.14 4.67 24.48 1.73 -4.29

Southwest Gas Holdings Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -5.30 -4.29 -1.36 -2.36 -3.30

Competitive Comparison of Southwest Gas Holdings's Sloan Ratio %

For the Utilities - Regulated Gas subindustry, Southwest Gas Holdings'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.


Southwest Gas Holdings's Sloan Ratio % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Southwest Gas Holdings's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Southwest Gas Holdings's Sloan Ratio % falls into.



Southwest Gas Holdings 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.

Southwest Gas Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2023 )-Cash Flow from Operations (A: Dec. 2023 )
-Cash Flow from Investing (A: Dec. 2023 ))/Total Assets (A: Dec. 2023 )
=(150.889-509.211
-150.966)/11869.896
=-4.29%

Southwest Gas Holdings's Sloan Ratio for the quarter that ended in Sep. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Sep. 2024 )
=(179.228-1465.113
--893.422)/11874.95
=-3.30%

Southwest Gas Holdings's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 72.869 (Dec. 2023 ) + 87.737 (Mar. 2024 ) + 18.333 (Jun. 2024 ) + 0.289 (Sep. 2024 ) = $179 Mil.
Southwest Gas Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 310.777 (Dec. 2023 ) + 543.709 (Mar. 2024 ) + 306.576 (Jun. 2024 ) + 304.051 (Sep. 2024 ) = $1,465 Mil.
Southwest Gas Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -206.1 (Dec. 2023 ) + -199.79 (Mar. 2024 ) + -226.097 (Jun. 2024 ) + -261.435 (Sep. 2024 ) = $-893 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.


Southwest Gas Holdings  (NYSE:SWX) 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.

According to How to Beat the Market with the Sloan Ratio:

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. 2024, Southwest Gas Holdings has a Sloan Ratio of -3.30%, indicating the company is in the safe zone and there is no funny business with accruals.


Southwest Gas Holdings Sloan Ratio % Related Terms

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Southwest Gas Holdings Business Description

Traded in Other Exchanges
N/A
Address
8360 South Durango Drive, Post Office Box 98510, Las Vegas, NV, USA, 89193-8510
Southwest Gas Holdings Inc is a utility company engaged in the purchasing, distributing, and transporting of natural gas in the American Southwest. The company segments its activities into natural gas distribution and Utility Infrastructure Services units. The first of these encompasses the company's core natural gas business as distributors in the states of Arizona and Nevada. The natural gas distribution division is responsible for roughly half of Southwest Gas' total revenue through the sale of natural gas to mainly residential and small commercial customers. The Utility Infrastructure Services segment generates the other half of the company's total revenue from the underground piping contractor services that its subsidiary, Centuri Construction Group, provides.
Executives
Carl C Icahn 10 percent owner C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH-1, SUNNY ISLES BEACH FL 33160
Robert J Stefani officer: SVP/Chief Financial Officer 8360 S. DURANGO DRIVE, LAS VEGAS NV 89113
Justin L Brown officer: SVP/General Counsel 8360 S. DURANGO DR., LAS VEGAS NV 89113
Paul M Daily officer: Executive Officer C/O SOUTHWEST GAS HOLDINGS, INC., 5241 SPRING MOUNTAIN ROAD, LAS VEGAS NV 89150
Icahn Partners Lp 10 percent owner 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Icahn Partners Master Fund Lp 10 percent owner 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Randall P. Gabe officer: SVP/Chief Administrative OFC 8360 S. DURANGO DRIVE, LAS VEGAS NV 89113
Amy L. Timperley officer: SVP/Chief Reg. & Fin. Planning 8360 S. DURANGO DRIVE, LAS VEGAS NV 89113
Ruby Sharma director 24 ARNOLD DRIVE, PRINCETON JCT. NJ 08550
Jose A Cardenas director 8360 S. DURANGO DR., LAS VEGAS NV 89113
Thomas E. Moran officer: VP/General Counsel/Corp. Sec SOUTHWEST GAS HOLDINGS, INC., 8360 SOUTH DURANGO DRIVE, LAS VEGAS NV 89113
Boyd S. Nelson officer: VP/Strategy & Inv Relations 8360 S. DURANGO DR., LAS VEGAS NV 89113
Julie M. Williams officer: SVP/Chief Operations Officer 8360 S. DURANGO DR., LAS VEGAS NV 89113
Lori L Colvin officer: VP/Controller/CAO 8360 S. DURANGO DR., LAS VEGAS NV 89113
Eric Debonis officer: SVP/Operations 8360 S. DURANGO DR., LAS VEGAS NV 89113