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.
Primoris Services's Sloan Ratio for the quarter that ended in Dec. 2023 was -1.11%.
As of Dec. 2023, Primoris Services has a Sloan Ratio of -1.11%, indicating the company is in the safe zone and there is no funny business with accruals.
Primoris Services Sloan Ratio % Historical Data
The historical data trend for Primoris Services'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 Primoris Services's Sloan Ratio %
For the Engineering & Construction subindustry, Primoris Services'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.
Primoris Services's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Primoris Services's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Primoris Services's Sloan Ratio % falls into.
Primoris Services 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.
Primoris Services's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Primoris Services's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 1.31 (Mar. 2023 ) + 39.032 (Jun. 2023 ) + 48.144 (Sep. 2023 ) + 37.659 (Dec. 2023 ) = $126 Mil.
Primoris Services's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -115.337 (Mar. 2023 ) + 34.505 (Jun. 2023 ) + 73.685 (Sep. 2023 ) + 205.699 (Dec. 2023 ) = $199 Mil.
Primoris Services's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -6.47 (Mar. 2023 ) + -3.157 (Jun. 2023 ) + -15.994 (Sep. 2023 ) + -4.389 (Dec. 2023 ) = $-30 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.
Primoris Services (NYSE:PRIM) 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, Primoris Services has a Sloan Ratio of -1.11%, indicating the company is in the safe zone and there is no funny business with accruals.
Primoris Services Sloan Ratio % Related Terms
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Primoris Services (Primoris Services) Business Description
Primoris Services Corp is a specialty contractor and infrastructure company in the United States. It has three operating segments. The Utility segment specializes in a range of services, including the installation and maintenance of new and existing natural gas distribution systems, electric utility distribution and transmission systems, and communications systems. The pipeline segment constructs and maintains pipelines for the petroleum and petrochemical industries. The Energy/Renewables segment includes engineering, procurement, construction, retrofits, highway and bridge construction, demolition, and other services. The Energy/Renewables segment earns the majority of the revenue. Primoris earns most of its revenue in the U.S.
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