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.
Knife River Holding Co's Sloan Ratio for the quarter that ended in Mar. 2024 was -2.91%.
As of Mar. 2024, Knife River Holding Co has a Sloan Ratio of -2.91%, indicating the company is in the safe zone and there is no funny business with accruals.
Knife River Holding Co 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 Knife River Holding Co's Sloan Ratio %
For the Building Materials subindustry, Knife River Holding Co'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.
Knife River Holding Co's Sloan Ratio % Distribution in the Building Materials Industry
For the Building Materials industry and Basic Materials sector, Knife River Holding Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Knife River Holding Co's Sloan Ratio % falls into.
Knife River Holding Co 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.
Knife River Holding Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Knife River Holding Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 56.836 (Jun. 2023 ) + 146.655 (Sep. 2023 ) + 20.701 (Dec. 2023 ) + -47.629 (Mar. 2024 ) = $177 Mil.
Knife River Holding Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 8.901 (Jun. 2023 ) + 223.305 (Sep. 2023 ) + 182.799 (Dec. 2023 ) + -43.21 (Mar. 2024 ) = $372 Mil.
Knife River Holding Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -23.362 (Jun. 2023 ) + -18.871 (Sep. 2023 ) + -34.902 (Dec. 2023 ) + -45.069 (Mar. 2024 ) = $-122 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.
Knife River Holding Co (NYSE:KNF) 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, Knife River Holding Co has a Sloan Ratio of -2.91%, indicating the company is in the safe zone and there is no funny business with accruals.
Knife River Holding Co Sloan Ratio % Related Terms
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Knife River Holding Co (Knife River Holding Co) Business Description
Knife River Holding Co formerly Knife River Corp provides construction materials and contracting services throughout the western, central, and southern United States. Knife River produces and delivers aggregates and markets crushed stone, sand, gravel, and related construction materials, including ready-mix concrete, asphalt, and other value-added products. It also distributes cement and asphalt oil. It has more than 1 billion tons of aggregate reserves, 110 ready-mix plants, 50 asphalt plants, and a combined 410,000 tons of liquid asphalt and cement storage. The company also performs integrated contracting services for most types of aggregate-related construction, including roads, freeways, bridges, residential properties, schools, shopping centers, office buildings, and industrial parks.
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