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.
Kaiser Aluminum's Sloan Ratio for the quarter that ended in Mar. 2024 was -4.67%.
As of Mar. 2024, Kaiser Aluminum has a Sloan Ratio of -4.67%, indicating the company is in the safe zone and there is no funny business with accruals.
Kaiser Aluminum Sloan Ratio % Historical Data
The historical data trend for Kaiser Aluminum'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 Kaiser Aluminum's Sloan Ratio %
For the Aluminum subindustry, Kaiser Aluminum'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.
Kaiser Aluminum's Sloan Ratio % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Kaiser Aluminum's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Kaiser Aluminum's Sloan Ratio % falls into.
Kaiser Aluminum 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.
Kaiser Aluminum's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Kaiser Aluminum's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 18.3 (Jun. 2023 ) + 5.4 (Sep. 2023 ) + 7.6 (Dec. 2023 ) + 24.6 (Mar. 2024 ) = $56 Mil.
Kaiser Aluminum's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 68.1 (Jun. 2023 ) + 89.8 (Sep. 2023 ) + 74.3 (Dec. 2023 ) + 63.3 (Mar. 2024 ) = $296 Mil.
Kaiser Aluminum's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -41.8 (Jun. 2023 ) + -37.3 (Sep. 2023 ) + -23.2 (Dec. 2023 ) + -29.9 (Mar. 2024 ) = $-132 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.
Kaiser Aluminum (NAS:KALU) 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, Kaiser Aluminum has a Sloan Ratio of -4.67%, indicating the company is in the safe zone and there is no funny business with accruals.
Kaiser Aluminum Sloan Ratio % Related Terms
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Kaiser Aluminum (Kaiser Aluminum) Business Description
Kaiser Aluminum Corp produces and sells semi-fabricated specialty aluminum products primarily to industrial customers. The company purchases primary and scrap aluminum, primarily from its five largest suppliers, and processes it into specialized value-added products. It hedges its aluminum costs in an attempt to match commodity price changes between the time it purchases the raw materials and sells the finished products. Kaiser produces high-strength aluminum products for the aerospace industry, specialized aluminum extrusions for the automotive industry, and also sells products to customers in the general engineering industry. Nearly all of Kaiser's revenue is generated in the US, with the remainder coming from Canada. The company's operations are also located in the U.S. and Canada.
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