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.
As of Dec. 2023, Preformed Line Products Co has a Sloan Ratio of 0.08%, indicating the company is in the safe zone and there is no funny business with accruals.
Preformed Line Products Co Sloan Ratio % Historical Data
* 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 Preformed Line Products Co's Sloan Ratio %
For the Electrical Equipment & Parts subindustry, Preformed Line Products 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.
Preformed Line Products Co's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Preformed Line Products Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Preformed Line Products Co's Sloan Ratio % falls into.
Preformed Line Products 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.
Preformed Line Products Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 21.398 (Mar. 2023 ) + 20.472 (Jun. 2023 ) + 15.13 (Sep. 2023 ) + 6.332 (Dec. 2023 ) = $63.3 Mil.
Preformed Line Products Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 25.43 (Mar. 2023 ) + 20.42 (Jun. 2023 ) + 42.504 (Sep. 2023 ) + 19.288 (Dec. 2023 ) = $107.6 Mil.
Preformed Line Products Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -22.295 (Mar. 2023 ) + -6.842 (Jun. 2023 ) + -7.564 (Sep. 2023 ) + -8.089 (Dec. 2023 ) = $-44.8 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.
Preformed Line Products Co (NAS:PLPC) 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, Preformed Line Products Co has a Sloan Ratio of 0.08%, indicating the company is in the safe zone and there is no funny business with accruals.
Preformed Line Products Co Sloan Ratio % Related Terms
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Preformed Line Products Co (Preformed Line Products Co) Business Description
Preformed Line Products Co is a designer and manufacturer of products and systems for constructing and maintaining overhead and underground networks for energy, telecommunication, cable operators, data communication, and other industries. In addition, it provides solar hardware systems and mounting hardware for a variety of solar power applications. Its products consist of Energy Products, Communications Products, and Special Industries Products. The company's majority of the revenue is derived from the sale of products in the United States with operations also in The Americas, Europe, the Middle East and Africa, and Asia-Pacific. The revenue gets driven by Energy products which comprise protecting transmission conductors, spacers, spacer-dampers, and Stockbridge dampers.
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