Algonquin Power & Utilities (TSX:AQN) Sloan Ratio % : 2.76% (As of Dec. 2023)

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What is Algonquin Power & Utilities 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.

Algonquin Power & Utilities's Sloan Ratio for the quarter that ended in Dec. 2023 was 2.76%.

As of Dec. 2023, Algonquin Power & Utilities has a Sloan Ratio of 2.76%, indicating the company is in the safe zone and there is no funny business with accruals.

Algonquin Power & Utilities Sloan Ratio % Historical Data

The historical data trend for Algonquin Power & Utilities'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.

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Algonquin Power & Utilities Sloan Ratio % Chart

Algonquin Power & Utilities Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Sloan Ratio %

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11.39

11.40

11.34

5.43

2.70

Algonquin Power & Utilities Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Sloan Ratio %	Get a 7-Day Free Trial															5.02	2.63	0.63	0.69	2.76

Competitive Comparison of Algonquin Power & Utilities's Sloan Ratio %

For the Utilities - Renewable subindustry, Algonquin Power & Utilities'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.

Algonquin Power & Utilities's Sloan Ratio % Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Algonquin Power & Utilities's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Algonquin Power & Utilities's Sloan Ratio % falls into.

Algonquin Power & Utilities 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.

Algonquin Power & Utilities's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (A: Dec. 2023 )	-	Cash Flow from Operations (A: Dec. 2023 )
	-	Cash Flow from Investing (A: Dec. 2023 ))	/	Total Assets (A: Dec. 2023 )
	=	(38.469	-	842.57
	-	-1469.885)	/	24650.506
	=	2.70%

Algonquin Power & Utilities's Sloan Ratio for the quarter that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Dec. 2023 )
	=	(46.966	-	842.878
	-	-1476.122)	/	24650.506
	=	2.76%

Algonquin Power & Utilities's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 369.631 (Mar. 2023 ) + -336.443 (Jun. 2023 ) + -236.182 (Sep. 2023 ) + 249.96 (Dec. 2023 ) = C$47 Mil.
Algonquin Power & Utilities's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 46.82 (Mar. 2023 ) + 347.301 (Jun. 2023 ) + 179.458 (Sep. 2023 ) + 269.299 (Dec. 2023 ) = C$843 Mil.
Algonquin Power & Utilities's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -299.937 (Mar. 2023 ) + -365.849 (Jun. 2023 ) + -466.358 (Sep. 2023 ) + -343.978 (Dec. 2023 ) = C$-1,476 Mil.

Algonquin Power & Utilities (TSX:AQN) 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 Dec. 2023, Algonquin Power & Utilities has a Sloan Ratio of 2.76%, indicating the company is in the safe zone and there is no funny business with accruals.

Algonquin Power & Utilities Sloan Ratio % Related Terms

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Algonquin Power & Utilities (TSX:AQN) Business Description

Industry

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AQNU:USA AGQPF.PFD:USA AQN:USA 751:Germany AQN.PR.D.PFD:Canada AQN.PR.A.PFD:Canada

Address

354 Davis Road, Oakville, ON, CAN, L6J 2X1

Website

https://www.algonquinpower.com

Algonquin Power & Utilities Corp, a parent company of Liberty, is a diversified international generation, transmission, and distribution utility with over $16 billion of total assets. Through its two business groups, the Regulated Services Group and the Renewable Energy Group, AQN is committed to providing safe, secure, reliable, cost-effective, and sustainable energy and water solutions through its portfolio of electric generation, transmission, and distribution utility investments to over one million customer connections, largely in the United States and Canada. AQN provides renewable energy through its portfolio of long-term contracted wind, solar, and hydroelectric generating facilities.