Headwaters (Headwaters) Sloan Ratio % : 18.34% (As of Mar. 2017)

Headwaters Sloan Ratio % Chart

Headwaters Annual Data
	Trend	Sep07	Sep08	Sep09	Sep10	Sep11	Sep12	Sep13	Sep14	Sep15	Sep16
Sloan Ratio %		Get a 7-Day Free Trial					-14.98	2.34	8.56	8.98	24.97

Headwaters Quarterly Data
	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17
Sloan Ratio %	Get a 7-Day Free Trial															16.57	14.39	24.97	21.51	18.34

Competitive Comparison of Headwaters's Sloan Ratio %

For the Building Materials subindustry, Headwaters'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.

Headwaters's Sloan Ratio % Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Headwaters's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Headwaters's Sloan Ratio % falls into.

Headwaters 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.

Headwaters's Sloan Ratio for the fiscal year that ended in Sep. 2016 is calculated as

Headwaters's Sloan Ratio for the quarter that ended in Mar. 2017 is calculated as

Headwaters's Net Income for the trailing twelve months (TTM) ended in Mar. 2017 was 17.516 (Jun. 2016 ) + 16.054 (Sep. 2016 ) + 6.667 (Dec. 2016 ) + 4.541 (Mar. 2017 ) = $45 Mil.
Headwaters's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2017 was 34.966 (Jun. 2016 ) + 40.896 (Sep. 2016 ) + 27.661 (Dec. 2016 ) + 7.009 (Mar. 2017 ) = $111 Mil.
Headwaters's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2017 was -5.398 (Jun. 2016 ) + -253.507 (Sep. 2016 ) + -12.695 (Dec. 2016 ) + -19.684 (Mar. 2017 ) = $-291 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.

Headwaters  (NYSE:HW) 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.

According to How to Beat the Market with the Sloan Ratio:

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. 2017, Headwaters has a Sloan Ratio of 18.34%, indicating there is a warning stage of accrual build up.

Headwaters Sloan Ratio % Related Terms

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Headwaters (Headwaters) Business Description