What is Aerojet Rocketdyne Holdings 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.
As of Mar. 2023, Aerojet Rocketdyne Holdings has a Sloan Ratio of 5.29%, indicating the company is in the safe zone and there is no funny business with accruals.
Aerojet Rocketdyne Holdings Sloan Ratio % Historical Data
* 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 Aerojet Rocketdyne Holdings's Sloan Ratio %
For the Aerospace & Defense subindustry, Aerojet Rocketdyne Holdings'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.
Aerojet Rocketdyne Holdings's Sloan Ratio % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Aerojet Rocketdyne Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Aerojet Rocketdyne Holdings's Sloan Ratio % falls into.
Aerojet Rocketdyne Holdings 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.
Aerojet Rocketdyne Holdings's Net Income for the trailing twelve months (TTM) ended in Mar. 2023 was 16.4 (Jun. 2022 ) + 13.7 (Sep. 2022 ) + 16.1 (Dec. 2022 ) + 27.8 (Mar. 2023 ) = $74 Mil.
Aerojet Rocketdyne Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2023 was -33.8 (Jun. 2022 ) + 35 (Sep. 2022 ) + 25.1 (Dec. 2022 ) + -32.8 (Mar. 2023 ) = $-6 Mil.
Aerojet Rocketdyne Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2023 was -9.7 (Jun. 2022 ) + -13.3 (Sep. 2022 ) + -17.2 (Dec. 2022 ) + -1.6 (Mar. 2023 ) = $-42 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.
Aerojet Rocketdyne Holdings (NYSE:AJRD) 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. 2023, Aerojet Rocketdyne Holdings has a Sloan Ratio of 5.29%, indicating the company is in the safe zone and there is no funny business with accruals.
Aerojet Rocketdyne Holdings Sloan Ratio % Related Terms
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Aerojet Rocketdyne Holdings (Aerojet Rocketdyne Holdings) Business Description
Aerojet Rocketdyne Holdings Inc manufactures aerospace and defense products and systems. It produces driving and launch systems for defense and space applications, weapons, and weapons systems for tactical missions. The systems can provide directional control for rockets, satellites, missiles, and other technical products. It operates in two segments: aerospace and defense, and real estate. The company manufactures its aerospace and defense products for the U.S. government, the National Aeronautics and Space Administration, aerospace and defense prime contractors, and portions of the commercial sector. The real estate segment focuses on rezoning, entitlement, sale, and leasing of real estate assets. The company's excess real estate is primarily located in California.
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