What is Allison Transmission 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.
As of Mar. 2024, Allison Transmission Holdings has a Sloan Ratio of 0.53%, indicating the company is in the safe zone and there is no funny business with accruals.
Allison Transmission Holdings 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 Allison Transmission Holdings's Sloan Ratio %
For the Auto Parts subindustry, Allison Transmission 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.
Allison Transmission Holdings's Sloan Ratio % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Allison Transmission Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Allison Transmission Holdings's Sloan Ratio % falls into.
Allison Transmission 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.
Allison Transmission Holdings's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 175 (Jun. 2023 ) + 158 (Sep. 2023 ) + 170 (Dec. 2023 ) + 169 (Mar. 2024 ) = $672 Mil.
Allison Transmission Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 141 (Jun. 2023 ) + 212 (Sep. 2023 ) + 238 (Dec. 2023 ) + 173 (Mar. 2024 ) = $764 Mil.
Allison Transmission Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -19 (Jun. 2023 ) + -30 (Sep. 2023 ) + -58 (Dec. 2023 ) + -12 (Mar. 2024 ) = $-119 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.
Allison Transmission Holdings (NYSE:ALSN) 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, Allison Transmission Holdings has a Sloan Ratio of 0.53%, indicating the company is in the safe zone and there is no funny business with accruals.
Allison Transmission Holdings Sloan Ratio % Related Terms
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Allison Transmission Holdings (Allison Transmission Holdings) Business Description
Allison Transmission is the largest manufacturer of fully automatic transmissions for commercial vehicles. The company's automatic transmissions allow customers to achieve better fuel and operator efficiency than less expensive manual and automated manual transmissions. Allison serves several end markets, including on- and off-highway equipment and military vehicles. Its on-highway business has approximately 60% global market share. The company's transmissions can be found in Class 4 through Class 8 trucks, buses, and a limited number of large passenger vehicles (heavy-duty pickup trucks and motor homes). Allison also produces electric hybrid propulsion systems and is developing e-powertrains.
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