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.
Ryerson Holding's Sloan Ratio for the quarter that ended in Mar. 2024 was 2.56%.
As of Mar. 2024, Ryerson Holding has a Sloan Ratio of 2.56%, indicating the company is in the safe zone and there is no funny business with accruals.
Ryerson Holding Sloan Ratio % Historical Data
The historical data trend for Ryerson Holding'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 Ryerson Holding's Sloan Ratio %
For the Metal Fabrication subindustry, Ryerson Holding'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.
Ryerson Holding's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Ryerson Holding's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Ryerson Holding's Sloan Ratio % falls into.
Ryerson Holding 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.
Ryerson Holding's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Ryerson Holding's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 37.6 (Jun. 2023 ) + 35 (Sep. 2023 ) + 25.8 (Dec. 2023 ) + -7.6 (Mar. 2024 ) = $91 Mil.
Ryerson Holding's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 115.3 (Jun. 2023 ) + 79.3 (Sep. 2023 ) + 90.1 (Dec. 2023 ) + -47.8 (Mar. 2024 ) = $237 Mil.
Ryerson Holding's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -57.5 (Jun. 2023 ) + -22.6 (Sep. 2023 ) + -115.3 (Dec. 2023 ) + -20.4 (Mar. 2024 ) = $-216 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.
Ryerson Holding (NYSE:RYI) 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, Ryerson Holding has a Sloan Ratio of 2.56%, indicating the company is in the safe zone and there is no funny business with accruals.
Ryerson Holding Sloan Ratio % Related Terms
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Ryerson Holding (Ryerson Holding) Business Description
Ryerson Holding Corp provides a metals service center, and value-added processor and is a distributor of industrial metals with operations in the United States, Canada and Mexico. In addition to its North American operations, it conducts processing and distribution operations in China. Its customers range from local, independently owned fabricators and machine shops to large, international original equipment manufacturers. It carries a full line of products in stainless steel, aluminium, carbon steel, and alloy steels and a limited line of nickel and red metals in various shapes and forms. The company generates substantially all of its revenue from sales of metal products. Geographically, the majority is from the United States.
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