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.
TerraVest Industries's Sloan Ratio for the quarter that ended in Mar. 2024 was 9.78%.
As of Mar. 2024, TerraVest Industries has a Sloan Ratio of 9.78%, indicating the company is in the safe zone and there is no funny business with accruals.
TerraVest Industries Sloan Ratio % Historical Data
The historical data trend for TerraVest 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 TerraVest Industries's Sloan Ratio %
For the Oil & Gas Equipment & Services subindustry, TerraVest 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.
TerraVest Industries's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, TerraVest Industries's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where TerraVest Industries's Sloan Ratio % falls into.
TerraVest 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.
TerraVest Industries's Sloan Ratio for the fiscal year that ended in Sep. 2023 is calculated as
TerraVest Industries's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 7.97 (Jun. 2023 ) + 13.301 (Sep. 2023 ) + 17.377 (Dec. 2023 ) + 22.361 (Mar. 2024 ) = C$61.0 Mil.
TerraVest Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 18.419 (Jun. 2023 ) + 19.776 (Sep. 2023 ) + 38.553 (Dec. 2023 ) + 43.166 (Mar. 2024 ) = C$119.9 Mil.
TerraVest Industries's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -4.111 (Jun. 2023 ) + -8.842 (Sep. 2023 ) + -130.941 (Dec. 2023 ) + 6.783 (Mar. 2024 ) = C$-137.1 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.
TerraVest Industries (TSX:TVK) 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 Mar. 2024, TerraVest Industries has a Sloan Ratio of 9.78%, indicating the company is in the safe zone and there is no funny business with accruals.
TerraVest Industries Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of TerraVest Industries's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
TerraVest Industries (TSX:TVK) Business Description
TerraVest Industries Inc is a manufacturer of home heating products, propane, anhydrous ammonia, natural gas liquids transport vehicles, storage vessels, energy processing equipment, and fiberglass storage tanks. The company's operating segments include, : Home Heating and Cooling Products (HVAC Equipment), Compressed Gas Storage and Distribution Equipment (Compressed Gas Equipment), Energy Processing Equipment (Processing Equipment) and Service. Majority of the revenue for the company is generated from its Compressed Gas Equipment segment which manufactures engineered products for the storage, distribution and dispensing of compressed gases including liquid propane gas, natural gas liquids, carbon dioxide and other gases. The company operates in Canada and United States.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
TSX:TVK has been successfully added to your 