What is Canadian Pacific Kansas City Sloan Ratio %?
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.
As of Mar. 2024, Canadian Pacific Kansas City has a Sloan Ratio of 2.39%, indicating the company is in the safe zone and there is no funny business with accruals.
Canadian Pacific Kansas City 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 Canadian Pacific Kansas City's Sloan Ratio %
For the Railroads subindustry, Canadian Pacific Kansas City'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.
Canadian Pacific Kansas City's Sloan Ratio % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Canadian Pacific Kansas City's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Canadian Pacific Kansas City's Sloan Ratio % falls into.
Canadian Pacific Kansas City 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.
Canadian Pacific Kansas City's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 996.538 (Jun. 2023 ) + 576.454 (Sep. 2023 ) + 762.522 (Dec. 2023 ) + 572.547 (Mar. 2024 ) = $2,908 Mil.
Canadian Pacific Kansas City's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 671.383 (Jun. 2023 ) + 758.998 (Sep. 2023 ) + 995.826 (Dec. 2023 ) + 749.852 (Mar. 2024 ) = $3,176 Mil.
Canadian Pacific Kansas City's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -464.399 (Jun. 2023 ) + -548.37 (Sep. 2023 ) + -298.897 (Dec. 2023 ) + -400.414 (Mar. 2024 ) = $-1,712 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.
Canadian Pacific Kansas City (NYSE:CP) 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, Canadian Pacific Kansas City has a Sloan Ratio of 2.39%, indicating the company is in the safe zone and there is no funny business with accruals.
Canadian Pacific Kansas City Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Canadian Pacific Kansas City's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Canadian Pacific Kansas City (Canadian Pacific Kansas City) Business Description
Canadian Pacific Kansas City is a Class-1 railroad operating on track that spans across most of Canada and into parts of the Midwestern and Northeastern United States. Following the April 2023 Kansas City Southern merger, CP operates new single-line-haul services from Canada and the Upper Midwest down through Texas, the Gulf of Mexico, and into Mexico. It also hauls cross border and intra Mexico freight via operating concessions on 3,300 miles of rail in Mexico. CP hauls shipments of grain, intermodal containers, energy products (like crude and frac sand), chemicals, plastics, coal, fertilizer and potash, automotive products, and a diverse mix of other merchandise.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
CP has been successfully added to your 