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.
MGE Energy's Sloan Ratio for the quarter that ended in Dec. 2023 was 4.12%.
As of Dec. 2023, MGE Energy has a Sloan Ratio of 4.12%, indicating the company is in the safe zone and there is no funny business with accruals.
MGE Energy Sloan Ratio % Historical Data
The historical data trend for MGE Energy'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 MGE Energy's Sloan Ratio %
For the Utilities - Regulated Electric subindustry, MGE Energy'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.
MGE Energy's Sloan Ratio % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, MGE Energy's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where MGE Energy's Sloan Ratio % falls into.
MGE Energy 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.
MGE Energy's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
MGE Energy's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 31.078 (Mar. 2023 ) + 28.681 (Jun. 2023 ) + 37.857 (Sep. 2023 ) + 20.083 (Dec. 2023 ) = $117.7 Mil.
MGE Energy's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 56.003 (Mar. 2023 ) + 70.988 (Jun. 2023 ) + 67.047 (Sep. 2023 ) + 43.523 (Dec. 2023 ) = $237.6 Mil.
MGE Energy's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -49.566 (Mar. 2023 ) + -62.193 (Jun. 2023 ) + -44.731 (Sep. 2023 ) + -73.53 (Dec. 2023 ) = $-230.0 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.
MGE Energy (NAS:MGEE) 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, MGE Energy has a Sloan Ratio of 4.12%, indicating the company is in the safe zone and there is no funny business with accruals.
MGE Energy Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of MGE Energy's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
MGE Energy Inc is a U.S. public utilities holding company based in Wisconsin. The firm generates, purchases, and distributes electricity and natural gas, and also provides transmission services, the company generates electricity from coal and purchased power, but also from natural gas, fuel oil, and renewable sources. MGE operates through five segments, which include Regulated electric utility operations, Regulated gas utility operations, Non-regulated energy operations, Transmission investments, and All other segment which includes investing in companies and property and financing the regulated operations. The majority of electric retail revenue is derived from commercial consumers whereas the majority of natural gas revenue is derived from residential consumers.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
MGEE has been successfully added to your 