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 Jan. 2024, Reko International Group has a Sloan Ratio of 9.35%, indicating the company is in the safe zone and there is no funny business with accruals.
Reko International Group 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.
Competitive Comparison of Reko International Group's Sloan Ratio %
For the Specialty Industrial Machinery subindustry, Reko International Group'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.
Reko International Group's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Reko International Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Reko International Group's Sloan Ratio % falls into.
Reko International Group 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.
Reko International Group's Sloan Ratio for the fiscal year that ended in Jul. 2023 is calculated as
Reko International Group's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was 0.055 (Apr. 2023 ) + 0.08 (Jul. 2023 ) + 0.311 (Oct. 2023 ) + 0.102 (Jan. 2024 ) = C$0.55 Mil.
Reko International Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was 1.491 (Apr. 2023 ) + 1.137 (Jul. 2023 ) + -2.394 (Oct. 2023 ) + -1.498 (Jan. 2024 ) = C$-1.26 Mil.
Reko International Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -0.512 (Apr. 2023 ) + -2.144 (Jul. 2023 ) + -1.253 (Oct. 2023 ) + -0.037 (Jan. 2024 ) = C$-3.95 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.
Reko International Group (TSXV:REKO) 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 Jan. 2024, Reko International Group has a Sloan Ratio of 9.35%, indicating the company is in the safe zone and there is no funny business with accruals.
Reko International Group Sloan Ratio % Related Terms
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Reko International Group (TSXV:REKO) Business Description
Reko International Group Inc is a Canada-based company engaged in the activities of robotic factory automation solutions, precision machining of large, critical parts, and plastic injection, and low compression acoustic tooling. The business divisions of the group are Automation, design and build, Tool and mold manufacturing, and Precision Machining. It supplies factory automation services in Canada. The company also provides machining, tooling, and engineering services. Precision machining relates to precision, custom machining of castings, and assemblies. Its geographical segments include Canada, which is the key revenue driver; and the United States.
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