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.
Titan Machinery's Sloan Ratio for the quarter that ended in Jan. 2024 was 15.46%.
As of Jan. 2024, Titan Machinery has a Sloan Ratio of 15.46%, indicating there is a warning stage of accrual build up.
Titan Machinery Sloan Ratio % Historical Data
The historical data trend for Titan Machinery'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 Titan Machinery's Sloan Ratio %
For the Industrial Distribution subindustry, Titan Machinery'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.
Titan Machinery's Sloan Ratio % Distribution in the Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Titan Machinery's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Titan Machinery's Sloan Ratio % falls into.
Titan Machinery 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.
Titan Machinery's Sloan Ratio for the fiscal year that ended in Jan. 2024 is calculated as
Titan Machinery's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was 26.965 (Apr. 2023 ) + 31.321 (Jul. 2023 ) + 30.193 (Oct. 2023 ) + 23.962 (Jan. 2024 ) = $112 Mil.
Titan Machinery's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was -77.704 (Apr. 2023 ) + -44.991 (Jul. 2023 ) + 40.634 (Oct. 2023 ) + 49.781 (Jan. 2024 ) = $-32 Mil.
Titan Machinery's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -26.3 (Apr. 2023 ) + -24.438 (Jul. 2023 ) + -13.313 (Oct. 2023 ) + -99.321 (Jan. 2024 ) = $-163 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.
Titan Machinery (NAS:TITN) 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 Jan. 2024, Titan Machinery has a Sloan Ratio of 15.46%, indicating there is a warning stage of accrual build up.
Titan Machinery Sloan Ratio % Related Terms
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Titan Machinery (Titan Machinery) Business Description
Titan Machinery Inc owns and operates a network of full-service agricultural and construction equipment stores. The company sells and repairs agricultural equipment, including machinery and attachments for large-scale farming and home and gardening purposes, as well as construction equipment. It operates through the following segments: The Agriculture segment sells, services, and rents machinery and related parts and attachments, for uses ranging from large-scale farming to home and garden use, The construction segment sells, services, and rents machinery, and related parts and attachments, for uses ranging from heavy construction to light industrial machinery use, and the International segment sells services, rents machinery, and related parts.
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