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.
Manitowoc Co's Sloan Ratio for the quarter that ended in Dec. 2023 was 2.81%.
As of Dec. 2023, Manitowoc Co has a Sloan Ratio of 2.81%, indicating the company is in the safe zone and there is no funny business with accruals.
Manitowoc Co Sloan Ratio % Historical Data
The historical data trend for Manitowoc 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 Manitowoc Co's Sloan Ratio %
For the Farm & Heavy Construction Machinery subindustry, Manitowoc 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.
Manitowoc Co's Sloan Ratio % Distribution in the Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Manitowoc Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Manitowoc Co's Sloan Ratio % falls into.
Manitowoc 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.
Manitowoc Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Manitowoc Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 16.5 (Mar. 2023 ) + 20.2 (Jun. 2023 ) + 10.4 (Sep. 2023 ) + -7.9 (Dec. 2023 ) = $39 Mil.
Manitowoc Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 15.4 (Mar. 2023 ) + -18.5 (Jun. 2023 ) + 26.3 (Sep. 2023 ) + 39.8 (Dec. 2023 ) = $63 Mil.
Manitowoc Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -8.6 (Mar. 2023 ) + -22.6 (Jun. 2023 ) + -23.4 (Sep. 2023 ) + -17.2 (Dec. 2023 ) = $-72 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.
Manitowoc Co (NYSE:MTW) 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, Manitowoc Co has a Sloan Ratio of 2.81%, indicating the company is in the safe zone and there is no funny business with accruals.
Manitowoc Co Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Manitowoc Co's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Manitowoc Co Inc provides engineered lifting solutions. It designs and manufactures mobile telescopic cranes, tower cranes, lattice-boom crawler cranes, and boom trucks. It offers products under brand names such as Grove, Manitowoc, National Crane, Potain, Shuttlelift, and Manitowoc Crane Care. Its crane products serve dealers, rental companies, contractors, and government entities in diverse markets, including energy production/distribution and utility, petrochemical and industrial, infrastructure, and commercial/residential construction. Manitowoc has three reportable segments: the Americas, Europe and Africa, and the Middle East and Asia-Pacific. The Americas segment provides the largest revenue stream to the firm.
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