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.
Access Engineering's Sloan Ratio for the quarter that ended in Dec. 2023 was 2.82%.
As of Dec. 2023, Access Engineering has a Sloan Ratio of 2.82%, indicating the company is in the safe zone and there is no funny business with accruals.
Access Engineering Sloan Ratio % Historical Data
The historical data trend for Access Engineering'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 Access Engineering's Sloan Ratio %
For the Engineering & Construction subindustry, Access Engineering'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.
Access Engineering's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Access Engineering's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Access Engineering's Sloan Ratio % falls into.
Access Engineering 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.
Access Engineering's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
Access Engineering's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 1931.659 (Mar. 2023 ) + 360.259 (Jun. 2023 ) + 4933.319 (Sep. 2023 ) + 622.19 (Dec. 2023 ) = රු7,847 Mil.
Access Engineering's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 8923.977 (Mar. 2023 ) + 3825.089 (Jun. 2023 ) + -986.393 (Sep. 2023 ) + 1355.382 (Dec. 2023 ) = රු13,118 Mil.
Access Engineering's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -3628.678 (Mar. 2023 ) + -2377.012 (Jun. 2023 ) + -1206.171 (Sep. 2023 ) + -824.787 (Dec. 2023 ) = රු-8,037 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.
Access Engineering (COL:AEL.N0000) 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, Access Engineering has a Sloan Ratio of 2.82%, indicating the company is in the safe zone and there is no funny business with accruals.
Access Engineering Sloan Ratio % Related Terms
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Access Engineering (COL:AEL.N0000) Business Description
Access Engineering PLC is involved in the business of construction activities and the supply of construction-related services and materials. The company is divided into four segments namely The Construction segment includes the process of constructing buildings and other infrastructures; The Construction-Related Materials segment involves the Production and supply of construction-related materials such as asphalt products, quarry products, and others; The Property segment is engaged in the development of high rise buildings and The Automobile segment includes importing and distribution, or sale of motor vehicles, and spare parts. It generates a majority of its revenue from the Construction Segment. The activities of the Group are located mainly in Sri Lanka.
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