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.
Hyzon Motors's Sloan Ratio for the quarter that ended in Mar. 2024 was -91.58%.
Warning Sign:
When sloan ratio (-123.75)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Mar. 2024, Hyzon Motors has a Sloan Ratio of -91.58%, indicating earnings are more likely to be made up of accruals.
Hyzon Motors Sloan Ratio % Historical Data
The historical data trend for Hyzon Motors'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 Hyzon Motors's Sloan Ratio %
For the Auto Parts subindustry, Hyzon Motors'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.
Hyzon Motors's Sloan Ratio % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Hyzon Motors's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Hyzon Motors's Sloan Ratio % falls into.
Hyzon Motors 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.
Hyzon Motors's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Hyzon Motors's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -60.248 (Jun. 2023 ) + -44.054 (Sep. 2023 ) + -49.492 (Dec. 2023 ) + -34.225 (Mar. 2024 ) = $-188.02 Mil.
Hyzon Motors's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -36.045 (Jun. 2023 ) + -30.014 (Sep. 2023 ) + -23.534 (Dec. 2023 ) + -31.195 (Mar. 2024 ) = $-120.79 Mil.
Hyzon Motors's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 74.3 (Jun. 2023 ) + 1.733 (Sep. 2023 ) + 25.714 (Dec. 2023 ) + -28.208 (Mar. 2024 ) = $73.54 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.
Hyzon Motors (NAS:HYZN) 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, Hyzon Motors has a Sloan Ratio of -91.58%, indicating earnings are more likely to be made up of accruals.
Hyzon Motors Sloan Ratio % Related Terms
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Hyzon Motors Inc assembles and supplies hydrogen fuel cell-powered commercial vehicles across North America, Europe, China, and Australasia. In addition, it builds and fosters a clean hydrogen supply ecosystem with partners from feedstocks through production, dispensing and financing. The company intends to meet its customers' zero-emission vehicle needs by electrifying proven vehicle platforms utilizing its industry- leading fuel cell and electric propulsion technologies. It expects to deploy these technologies in various vehicle classes, including heavy-duty and medium-duty trucks and buses with the potential for future expansion into light-duty commercial vehicles, additional mobility use cases and stationary power applications.
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