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. 2024, Bowman Consulting Group has a Sloan Ratio of 3.05%, indicating the company is in the safe zone and there is no funny business with accruals.
Bowman Consulting Group 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 Bowman Consulting Group's Sloan Ratio %
For the Engineering & Construction subindustry, Bowman Consulting Group'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.
Bowman Consulting Group's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Bowman Consulting Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Bowman Consulting Group's Sloan Ratio % falls into.
Bowman Consulting Group 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.
Bowman Consulting Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Bowman Consulting Group's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -0.634 (Jun. 2023 ) + 1.183 (Sep. 2023 ) + -7.71 (Dec. 2023 ) + -1.558 (Mar. 2024 ) = $-8.7 Mil.
Bowman Consulting Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -4.212 (Jun. 2023 ) + 10.205 (Sep. 2023 ) + -0.549 (Dec. 2023 ) + 2.519 (Mar. 2024 ) = $8.0 Mil.
Bowman Consulting Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -15.249 (Jun. 2023 ) + -1.352 (Sep. 2023 ) + -10.157 (Dec. 2023 ) + -2.739 (Mar. 2024 ) = $-29.5 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.
Bowman Consulting Group (NAS:BWMN) 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, Bowman Consulting Group has a Sloan Ratio of 3.05%, indicating the company is in the safe zone and there is no funny business with accruals.
Bowman Consulting Group Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Bowman Consulting Group's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Bowman Consulting Group (Bowman Consulting Group) Business Description
Bowman Consulting Group Ltd is a multi-faceted consulting firm offering a broad range of real estate, energy, infrastructure, and environmental management solutions to both public and private clients across the country. From large commercial developments, to master planned communities, to local transportation projects, Bowman delivers outstanding project results, builds long-lasting relationships and leverages the growth of the organization to serve the constantly changing needs of clients.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
BWMN has been successfully added to your 