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REV Group (REV Group) Sloan Ratio % : -6.54% (As of Jan. 2024)


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What is REV Group Sloan Ratio %?

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.

REV Group's Sloan Ratio for the quarter that ended in Jan. 2024 was -6.54%.

As of Jan. 2024, REV Group has a Sloan Ratio of -6.54%, indicating the company is in the safe zone and there is no funny business with accruals.


REV Group Sloan Ratio % Historical Data

The historical data trend for REV Group'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.

* Premium members only.

REV Group Sloan Ratio % Chart

REV Group Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -4.83 -6.70 -8.37 -4.58 -3.64

REV Group Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -5.18 -2.56 -4.33 -3.64 -6.54

Competitive Comparison of REV Group's Sloan Ratio %

For the Farm & Heavy Construction Machinery subindustry, REV Group'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.


REV Group's Sloan Ratio % Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, REV Group's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where REV Group's Sloan Ratio % falls into.



REV Group 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.

REV Group's Sloan Ratio for the fiscal year that ended in Oct. 2023 is calculated as

Sloan Ratio=(Net Income (A: Oct. 2023 )-Cash Flow from Operations (A: Oct. 2023 )
-Cash Flow from Investing (A: Oct. 2023 ))/Total Assets (A: Oct. 2023 )
=(45.3-126.5
--29.9)/1410.4
=-3.64%

REV Group's Sloan Ratio for the quarter that ended in Jan. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Jan. 2024 )
=(241.5-63.7
-270.8)/1421.1
=-6.54%

REV Group's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was 14.2 (Apr. 2023 ) + 14.9 (Jul. 2023 ) + 29.7 (Oct. 2023 ) + 182.7 (Jan. 2024 ) = $242 Mil.
REV Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was 15.1 (Apr. 2023 ) + 65.2 (Jul. 2023 ) + 53.1 (Oct. 2023 ) + -69.7 (Jan. 2024 ) = $64 Mil.
REV Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -5.9 (Apr. 2023 ) + -9.1 (Jul. 2023 ) + -11.9 (Oct. 2023 ) + 297.7 (Jan. 2024 ) = $271 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.


REV Group  (NYSE:REVG) 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.

According to How to Beat the Market with the Sloan Ratio:

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 Jan. 2024, REV Group has a Sloan Ratio of -6.54%, indicating the company is in the safe zone and there is no funny business with accruals.


REV Group Sloan Ratio % Related Terms

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REV Group (REV Group) Business Description

Traded in Other Exchanges
Address
245 South Executive Drive, Suite 100, Brookfield, WI, USA, 53005
REV Group Inc is a United States-based designer, manufacturer, and distributor of specialty vehicles and related aftermarket parts and services. It provides customized vehicle solutions for applications including essential needs, industrial and commercial, and consumer leisure. The operating segments of the company are Fire & Emergency, Commercial, and Recreation. The products of the company are sold to municipalities, government agencies, private contractors, consumers, and industrial and commercial end-users. It derives a majority of the revenue from the Fire and Emergency segment which includes manufacturing of fire apparatus and ambulance products. The company operates in the United States, Canada, and the rest of the world.
Executives
Stephen Zamansky officer: SVP, Gen Counsel & Sec
Maureen Oconnell director
Joseph Ladue officer: Chief Accounting Officer 245 SOUTH EXECUTIVE DR, SUITE 100, BROOKFIELD WI 53005
Paul J Bamatter director C/O REV GROUP, INC., 111 EAST KILBOURN AVENUE, SUITE 2600, MILWAUKEE WI 53202
Joel M. Rotroff director C/O REV GROUP, INC., 111 EAST KILBOURN AVENUE, SUITE 2600, MILWAUKEE WI 53202
Dino M Cusumano director C/O REV GROUP, INC., 111 EAST KILBOURN AVENUE, SUITE 2600, MILWAUKEE WI 53202
Justin Fish director C/O REV GROUP, INC., 111 EAST KILBOURN AVENUE, SUITE 2600, MILWAUKEE WI 53202
Skonieczny Jr. Mark A officer: Chief Financial Officer 833 E MICHIGAN STREET, SUITE 1100, MILWAUKEE WI 53202
Christopher M Daniels officer: Chief Human Resources Officer 111 E. KILBOURN AVE., SUITE 2600, MILWAUKEE WI 53202
Rodney M Rushing director, officer: CEO and President 5757 N GREEN BAY AVE, MILWAUKEE WI 53209
Stephen W. Boettinger officer: General Counsel C/O REV GROUP, INC., 111 E KILBOURN AVENUE, SUITE 2600, MILWAUKEE WI 53202
Randall Swift director 450 LEXINGTON AVE, 40TH FLOOR, NEW YORK NY 10017
Dean J Nolden officer: Chief Financial Officer C/O REV GROUP, INC., 111 EAST KILBOURN AVENUE, SUITE 2600, MILWAUKEE WI 53202
Timothy W Sullivan director, officer: Chief Executive Officer C/O REV GROUP, INC., 111 EAST KILBOURN AVENUE, SUITE 2600, MILWAUKEE WI 53202
John Canan director C/O REV GROUP, INC., 111 EAST KILBOURN AVENUE, SUITE 2600, MILWAUKEE WI 53202