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.
Willis Lease Finance's Sloan Ratio for the quarter that ended in Dec. 2024 was 17.87%.
As of Dec. 2024, Willis Lease Finance has a Sloan Ratio of 17.87%, indicating there is a warning stage of accrual build up.
Willis Lease Finance Sloan Ratio % Historical Data
The historical data trend for Willis Lease Finance'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 Willis Lease Finance's Sloan Ratio %
For the Rental & Leasing Services subindustry, Willis Lease Finance'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.
Willis Lease Finance's Sloan Ratio % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Willis Lease Finance's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Willis Lease Finance's Sloan Ratio % falls into.
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.
Willis Lease Finance's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
Willis Lease Finance's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was 20.869 (Mar. 2024 ) + 42.586 (Jun. 2024 ) + 24.096 (Sep. 2024 ) + 21.061 (Dec. 2024 ) = $108.6 Mil.
Willis Lease Finance's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was 59.827 (Mar. 2024 ) + 69.826 (Jun. 2024 ) + 86.787 (Sep. 2024 ) + 67.966 (Dec. 2024 ) = $284.4 Mil.
Willis Lease Finance's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -63.764 (Mar. 2024 ) + -211.244 (Jun. 2024 ) + -179.951 (Sep. 2024 ) + -309.949 (Dec. 2024 ) = $-764.9 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.
Willis Lease Finance (NAS:WLFC) 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 Dec. 2024, Willis Lease Finance has a Sloan Ratio of 17.87%, indicating there is a warning stage of accrual build up.
Willis Lease Finance Sloan Ratio % Related Terms
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Willis Lease Finance Corp, with its subsidiaries, is a lessor and servicer of commercial aircraft and aircraft engines. The company has two reportable business segments, which include Leasing and Related Operations and Spare Parts Sales. A majority of its revenue is generated from the Leasing and Related Operations segment, which involves acquiring and leasing, under operating leases, commercial aircraft, aircraft engines, and other aircraft equipment and the selective purchase and resale of commercial aircraft engines, aircraft equipment, and other related businesses. Geographically, the company derives maximum revenue from the United States, followed by Europe, Asia-Pacific (excluding India), India, South America, Canada, Central America, and the Middle East.
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