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.
The Goldfield's Sloan Ratio for the quarter that ended in Sep. 2020 was 8.97%.
As of Sep. 2020, The Goldfield has a Sloan Ratio of 8.97%, indicating the company is in the safe zone and there is no funny business with accruals.
The Goldfield Sloan Ratio % Historical Data
The historical data trend for The Goldfield'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 The Goldfield's Sloan Ratio %
For the Engineering & Construction subindustry, The Goldfield'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.
The Goldfield's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, The Goldfield's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where The Goldfield's Sloan Ratio % falls into.
The Goldfield 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.
The Goldfield's Sloan Ratio for the fiscal year that ended in Dec. 2019 is calculated as
The Goldfield's Net Income for the trailing twelve months (TTM) ended in Sep. 2020 was 2.966 (Dec. 2019 ) + 1.48 (Mar. 2020 ) + 2.461 (Jun. 2020 ) + 1.092 (Sep. 2020 ) = $8.0 Mil.
The Goldfield's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2020 was 7.997 (Dec. 2019 ) + -3.926 (Mar. 2020 ) + 6.894 (Jun. 2020 ) + -1.02 (Sep. 2020 ) = $9.9 Mil.
The Goldfield's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2020 was -3.534 (Dec. 2019 ) + -4.921 (Mar. 2020 ) + -3.918 (Jun. 2020 ) + -3.876 (Sep. 2020 ) = $-16.2 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.
The Goldfield (AMEX:GV) 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. 2020, The Goldfield has a Sloan Ratio of 8.97%, indicating the company is in the safe zone and there is no funny business with accruals.
The Goldfield Sloan Ratio % Related Terms
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The Goldfield (The Goldfield) Business Description
The Goldfield Corp operates in the energy infrastructure industry. It is primarily engaged in the construction of electrical infrastructure for the utility industry and industrial customers. The company specializes in installing and maintaining electrical transmission lines for a wide range of electric utilities. It is also a real estate developer of residential properties on the east coast of Florida. The principal market for its electrical construction operation is primarily in the Southeast and mid-Atlantic regions of the United States and Texas. The company operates in the segments of Electrical construction and Real estate development, of which a majority of the revenue is derived from the Electrical construction segment.
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