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.
Quanta Services's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.98%.
As of Dec. 2023, Quanta Services has a Sloan Ratio of 0.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Quanta Services Sloan Ratio % Historical Data
The historical data trend for Quanta Services'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 Quanta Services's Sloan Ratio %
For the Engineering & Construction subindustry, Quanta Services'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.
Quanta Services's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Quanta Services's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Quanta Services's Sloan Ratio % falls into.
Quanta Services 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.
Quanta Services's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Quanta Services's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 95.046 (Mar. 2023 ) + 165.899 (Jun. 2023 ) + 272.836 (Sep. 2023 ) + 210.908 (Dec. 2023 ) = $745 Mil.
Quanta Services's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 38.409 (Mar. 2023 ) + 127.413 (Jun. 2023 ) + 406.592 (Sep. 2023 ) + 1003.538 (Dec. 2023 ) = $1,576 Mil.
Quanta Services's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -488.624 (Mar. 2023 ) + -78.743 (Jun. 2023 ) + -154.957 (Sep. 2023 ) + -267.326 (Dec. 2023 ) = $-990 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.
Quanta Services (NYSE:PWR) 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, Quanta Services has a Sloan Ratio of 0.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Quanta Services Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Quanta Services's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Quanta Services (Quanta Services) Business Description
Quanta Services is a leading provider of specialty contracting services, delivering comprehensive infrastructure solutions for the electric and gas utility, communications, pipeline, and energy industries in the United States, Canada, and Australia. Quanta reports its results under three reportable segments: electric power, renewables infrastructure, and underground utility and infrastructure. In 2021, the company acquired Blattner, a provider of comprehensive engineering, procurement, and construction solutions to customers in the renewable energy industry.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
PWR has been successfully added to your 