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.
Air Transport Services Group's Sloan Ratio for the quarter that ended in Dec. 2023 was 4.44%.
As of Dec. 2023, Air Transport Services Group has a Sloan Ratio of 4.44%, indicating the company is in the safe zone and there is no funny business with accruals.
Air Transport Services Group Sloan Ratio % Historical Data
The historical data trend for Air Transport Services Group'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.
For the Airlines subindustry, Air Transport Services 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.
Air Transport Services Group Sloan Ratio % Distribution
For the Transportation industry and Industrials sector, Air Transport Services Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Air Transport Services Group's Sloan Ratio % falls into.
Air Transport Services 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.
Air Transport Services Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Air Transport Services Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 20.141 (Mar. 2023 ) + 38.022 (Jun. 2023 ) + 17.172 (Sep. 2023 ) + -15.008 (Dec. 2023 ) = $60 Mil.
Air Transport Services Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 216.378 (Mar. 2023 ) + 192.198 (Jun. 2023 ) + 117.517 (Sep. 2023 ) + 127.988 (Dec. 2023 ) = $654 Mil.
Air Transport Services Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -209.741 (Mar. 2023 ) + -193.539 (Jun. 2023 ) + -169.144 (Sep. 2023 ) + -193.505 (Dec. 2023 ) = $-766 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.
Air Transport Services Group (NAS:ATSG) 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. 2023, Air Transport Services Group has a Sloan Ratio of 4.44%, indicating the company is in the safe zone and there is no funny business with accruals.
Air Transport Services Group Sloan Ratio % Related Terms
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Air Transport Services Group (Air Transport Services Group) Business Description
Air Transport Services Group Inc along with its subsidiaries operates within the airfreight and logistics industry. It leases aircraft and provides airline operations, ground services, aircraft modification and maintenance, and other support services mainly to the cargo transportation and package delivery industries. The company has two reportable segments namely Cargo Aircraft Management and ACMI Services (Aircraft, Crew, Maintenance, and Insurance). It generates a majority of its revenue from the ACMI services segment.
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