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.
Middlesex Water Co's Sloan Ratio for the quarter that ended in Dec. 2023 was 5.58%.
As of Dec. 2023, Middlesex Water Co has a Sloan Ratio of 5.58%, indicating the company is in the safe zone and there is no funny business with accruals.
Middlesex Water Co Sloan Ratio % Historical Data
The historical data trend for Middlesex Water Co'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 Middlesex Water Co's Sloan Ratio %
For the Utilities - Regulated Water subindustry, Middlesex Water Co'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.
Middlesex Water Co's Sloan Ratio % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Middlesex Water Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Middlesex Water Co's Sloan Ratio % falls into.
Middlesex Water Co 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.
Middlesex Water Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Middlesex Water Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 5.868 (Mar. 2023 ) + 9.901 (Jun. 2023 ) + 9.99 (Sep. 2023 ) + 5.765 (Dec. 2023 ) = $31.5 Mil.
Middlesex Water Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 15.97 (Mar. 2023 ) + 13.317 (Jun. 2023 ) + 10.699 (Sep. 2023 ) + 12.796 (Dec. 2023 ) = $52.8 Mil.
Middlesex Water Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -24.515 (Mar. 2023 ) + -26.12 (Jun. 2023 ) + -22.439 (Sep. 2023 ) + -17.105 (Dec. 2023 ) = $-90.2 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.
Middlesex Water Co (NAS:MSEX) 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, Middlesex Water Co has a Sloan Ratio of 5.58%, indicating the company is in the safe zone and there is no funny business with accruals.
Middlesex Water Co Sloan Ratio % Related Terms
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Middlesex Water Co (Middlesex Water Co) Business Description
Middlesex Water Co owns and operates regulated water utility and wastewater systems in the U.S. The firm primarily operates in the eastern states of New Jersey, Delaware, and Pennsylvania. The company has two operating segments, Regulated and Non-Regulated. The regulated business includes collecting and distributing water to residential, commercial, industrial, and fire protection consumers. The non-regulated business includes contract services for the operation of private water and wastewater systems. The majority of the company's revenue is derived from the Regulated segment and from residential customers.
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