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.
Russel Metals's Sloan Ratio for the quarter that ended in Mar. 2024 was -5.27%.
As of Mar. 2024, Russel Metals has a Sloan Ratio of -5.27%, indicating the company is in the safe zone and there is no funny business with accruals.
Russel Metals Sloan Ratio % Historical Data
The historical data trend for Russel Metals'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 Russel Metals's Sloan Ratio %
For the Industrial Distribution subindustry, Russel Metals'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.
Russel Metals's Sloan Ratio % Distribution in the Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Russel Metals's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Russel Metals's Sloan Ratio % falls into.
Russel Metals 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.
Russel Metals's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Russel Metals's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 63.977 (Jun. 2023 ) + 44.786 (Sep. 2023 ) + 35.182 (Dec. 2023 ) + 36.717 (Mar. 2024 ) = $181 Mil.
Russel Metals's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 98.374 (Jun. 2023 ) + 84.621 (Sep. 2023 ) + 111.21 (Dec. 2023 ) + 1.625 (Mar. 2024 ) = $296 Mil.
Russel Metals's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -3.989 (Jun. 2023 ) + 33.479 (Sep. 2023 ) + -26.312 (Dec. 2023 ) + -17.435 (Mar. 2024 ) = $-14 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.
Russel Metals (OTCPK:RUSMF) 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 Mar. 2024, Russel Metals has a Sloan Ratio of -5.27%, indicating the company is in the safe zone and there is no funny business with accruals.
Russel Metals Sloan Ratio % Related Terms
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Russel Metals (Russel Metals) Business Description
Russel Metals Inc is a Canada-based metal distribution company. The company conducts business primarily through three metals distribution segments: metals service centers; energy products; and steel distributors. The metal service centers provide processing and distribution services to a broad base of end-users. The energy products segment distributes oil country tubular goods, line pipe, tubes, valves, and fittings, primarily to the energy industry in Western Canada and the U.S. The steel distributors segment acts as master distributors selling steel in large volumes to other steel service centers and equipment manufacturers mainly on an "as is" basis. The company generates all of its revenue from the North American market.
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