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.
Eagle Materials's Sloan Ratio for the quarter that ended in Dec. 2023 was 4.53%.
As of Dec. 2023, Eagle Materials has a Sloan Ratio of 4.53%, indicating the company is in the safe zone and there is no funny business with accruals.
Eagle Materials Sloan Ratio % Historical Data
The historical data trend for Eagle Materials'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 Eagle Materials's Sloan Ratio %
For the Building Materials subindustry, Eagle Materials'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.
Eagle Materials's Sloan Ratio % Distribution in the Building Materials Industry
For the Building Materials industry and Basic Materials sector, Eagle Materials's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Eagle Materials's Sloan Ratio % falls into.
Eagle Materials 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.
Eagle Materials's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
Eagle Materials's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 100.356 (Mar. 2023 ) + 120.849 (Jun. 2023 ) + 150.553 (Sep. 2023 ) + 129.138 (Dec. 2023 ) = $501 Mil.
Eagle Materials's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 61.615 (Mar. 2023 ) + 140.487 (Jun. 2023 ) + 172.352 (Sep. 2023 ) + 187.71 (Dec. 2023 ) = $562 Mil.
Eagle Materials's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -49.192 (Mar. 2023 ) + -91.052 (Jun. 2023 ) + -29.454 (Sep. 2023 ) + -22.395 (Dec. 2023 ) = $-192 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.
Eagle Materials (NYSE:EXP) 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, Eagle Materials has a Sloan Ratio of 4.53%, indicating the company is in the safe zone and there is no funny business with accruals.
Eagle Materials Sloan Ratio % Related Terms
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Eagle Materials (Eagle Materials) Business Description
Eagle Materials Inc produces and sells construction products and building materials. Construction products include cement, slag, concrete, and aggregates and building materials include gypsum wallboard, and are sold to the construction and building industries. Basic materials used for oil and natural gas extraction include frac sand and oil well cement. The firm organizes itself into two sectors: Heavy Materials, which includes the Cement and Concrete and Aggregates segments, and Light Materials, which includes the Gypsum Wallboard and Recycled Paperboard segments.
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