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Euroseas (NAS:ESEA) Sloan Ratio %

: 31.19% (As of Mar. 2023)
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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.

Euroseas's Sloan Ratio for the quarter that ended in Mar. 2023 was 31.19%.

As of Mar. 2023, Euroseas has a Sloan Ratio of 31.19%, indicating there is a warning stage of accrual build up.


Euroseas Sloan Ratio % Historical Data

The historical data trend for Euroseas'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.

* Premium members only.

Euroseas Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Sloan Ratio %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -7.30 40.04 -13.28 29.11 24.13

Euroseas Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
Sloan Ratio % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 27.81 45.23 40.73 24.13 31.19

Competitive Comparison

For the Marine Shipping subindustry, Euroseas'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.

   

Euroseas Sloan Ratio % Distribution

For the Transportation industry and Industrials sector, Euroseas's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Euroseas's Sloan Ratio % falls in comparison to its industry or sector. The grey bar indicates the Sloan Ratio %'s extreme value range as defined by GuruFocus.



Euroseas 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.

Euroseas's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2022 )-Cash Flow from Operations (A: Dec. 2022 )
-Cash Flow from Investing (A: Dec. 2022 ))/Total Assets (A: Dec. 2022 )
=(106.245-114.083
--87.133)/328.59
=24.13%

Euroseas's Sloan Ratio for the quarter that ended in Mar. 2023 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Mar. 2023 )
=(105.064-108.611
--116.148)/361.053
=31.19%

Euroseas's Net Income for the trailing twelve months (TTM) ended in Mar. 2023 was 30.75 (Jun. 2022 ) + 25.223 (Sep. 2022 ) + 20.336 (Dec. 2022 ) + 28.755 (Mar. 2023 ) = $105.1 Mil.
Euroseas's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2023 was 33.815 (Jun. 2022 ) + 31.31 (Sep. 2022 ) + 18.735 (Dec. 2022 ) + 24.751 (Mar. 2023 ) = $108.6 Mil.
Euroseas's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2023 was -66.56 (Jun. 2022 ) + -13.039 (Sep. 2022 ) + -6.847 (Dec. 2022 ) + -29.702 (Mar. 2023 ) = $-116.1 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.


Euroseas  (NAS:ESEA) 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.

According to How to Beat the Market with the Sloan Ratio:

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. 2023, Euroseas has a Sloan Ratio of 31.19%, indicating there is a warning stage of accrual build up.


Euroseas Sloan Ratio % Related Terms

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Euroseas (NAS:ESEA) Business Description

Euroseas logo
Traded in Other Exchanges
Address
4 Messogiou and Evropis Street, Maroussi, GRC, 151 24
Euroseas Ltd is a shipping company. Its fleet consists of containerships that transport container boxes providing scheduled service between ports. Its operations are managed by an affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. The company employs its vessels on spot and period charters and through pool arrangements.

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