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.
SIA Engineering Co's Sloan Ratio for the quarter that ended in Sep. 2023 was 0.42%.
As of Sep. 2023, SIA Engineering Co has a Sloan Ratio of 0.42%, indicating the company is in the safe zone and there is no funny business with accruals.
SIA Engineering Co Sloan Ratio % Historical Data
The historical data trend for SIA Engineering Co'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 SIA Engineering Co's Sloan Ratio %
For the Airports & Air Services subindustry, SIA Engineering Co'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.
SIA Engineering Co's Sloan Ratio % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, SIA Engineering Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where SIA Engineering Co's Sloan Ratio % falls into.
SIA Engineering Co 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.
SIA Engineering Co's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
SIA Engineering Co's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was 23.62 (Mar. 2023 ) + 40.761 (Sep. 2023 ) = €64.4 Mil.
SIA Engineering Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was 21.945 (Mar. 2023 ) + 23.425 (Sep. 2023 ) = €45.4 Mil.
SIA Engineering Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was 11.003 (Mar. 2023 ) + 2.121 (Sep. 2023 ) = €13.1 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.
SIA Engineering Co (FRA:O3H) 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 Sep. 2023, SIA Engineering Co has a Sloan Ratio of 0.42%, indicating the company is in the safe zone and there is no funny business with accruals.
SIA Engineering Co Sloan Ratio % Related Terms
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SIA Engineering Co Ltd and its subsidiaries maintain, repair, and overhaul aircraft for many airlines. The company is organized into two segments: airframe/line maintenance and engine/component. In hangars and workshops, the company tends to airframes, engines, and other components. It offers scheduled checks and provides modifications to fit customers' aesthetic desires. The line maintenance division provides aircraft certification and ground handling services and assists communication at airports. Its geographical segments include East Asia, Europe, South West Pacific, America, and West Asia & Africa.
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