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.
Skyline Champion's Sloan Ratio for the quarter that ended in Dec. 2023 was 22.56%.
As of Dec. 2023, Skyline Champion has a Sloan Ratio of 22.56%, indicating there is a warning stage of accrual build up.
Skyline Champion Sloan Ratio % Historical Data
The historical data trend for Skyline Champion'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 Skyline Champion's Sloan Ratio %
For the Residential Construction subindustry, Skyline Champion'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.
Skyline Champion's Sloan Ratio % Distribution in the Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Skyline Champion's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Skyline Champion's Sloan Ratio % falls into.
Skyline Champion 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.
Skyline Champion's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
Skyline Champion's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 57.746 (Mar. 2023 ) + 51.269 (Jun. 2023 ) + 45.669 (Sep. 2023 ) + 46.97 (Dec. 2023 ) = $202 Mil.
Skyline Champion's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 52.181 (Mar. 2023 ) + 74.857 (Jun. 2023 ) + 54.281 (Sep. 2023 ) + 89.479 (Dec. 2023 ) = $271 Mil.
Skyline Champion's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -16.416 (Mar. 2023 ) + -25.615 (Jun. 2023 ) + -149.024 (Sep. 2023 ) + -299.784 (Dec. 2023 ) = $-491 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.
Skyline Champion (NYSE:SKY) 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, Skyline Champion has a Sloan Ratio of 22.56%, indicating there is a warning stage of accrual build up.
Skyline Champion Sloan Ratio % Related Terms
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Skyline Champion (Skyline Champion) Business Description
Skyline Champion Corp is a factory-built housing company in North America. The company offers a portfolio of manufactured and modular homes, park model RVs, accessory dwelling units and modular buildings for the multi-family, hospitality, senior and workforce housing sectors. It designs and builds a range of manufactured and modular homes, park model RVs, ADUs, and commercial structures. It builds homes under brand names in the factory-built housing industry including Skyline Homes, Champion Home Builders, Genesis Homes, Athens Park Models, Dutch Housing, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes in the U.S., and Moduline and SRI Homes in western Canada. It generates maximum revenue from U.S. Factory-built Housing segment.
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