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.
Luxfer Holdings's Sloan Ratio for the quarter that ended in Mar. 2024 was -9.09%.
As of Mar. 2024, Luxfer Holdings has a Sloan Ratio of -9.09%, indicating the company is in the safe zone and there is no funny business with accruals.
Luxfer Holdings Sloan Ratio % Historical Data
The historical data trend for Luxfer Holdings'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 Luxfer Holdings's Sloan Ratio %
For the Specialty Industrial Machinery subindustry, Luxfer Holdings'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.
Luxfer Holdings's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Luxfer Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Luxfer Holdings's Sloan Ratio % falls into.
Luxfer Holdings 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.
Luxfer Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Luxfer Holdings's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 4.7 (Jun. 2023 ) + -1.3 (Sep. 2023 ) + -5.8 (Dec. 2023 ) + 2.7 (Mar. 2024 ) = $0.3 Mil.
Luxfer Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 13.2 (Jun. 2023 ) + 11.5 (Sep. 2023 ) + 16 (Dec. 2023 ) + 3.7 (Mar. 2024 ) = $44.4 Mil.
Luxfer Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -3 (Jun. 2023 ) + -2.6 (Sep. 2023 ) + -1.9 (Dec. 2023 ) + -1.5 (Mar. 2024 ) = $-9.0 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.
Luxfer Holdings (NYSE:LXFR) 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, Luxfer Holdings has a Sloan Ratio of -9.09%, indicating the company is in the safe zone and there is no funny business with accruals.
Luxfer Holdings Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Luxfer Holdings's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Luxfer Holdings (Luxfer Holdings) Business Description
Luxfer Holdings PLC is a global manufacturer of highly-engineered industrial materials which focuses on value creation by using its broad array of technical know-how and proprietary technologies. Its high-performance materials, components and high-pressure gas containment devices are used in defense and emergency response, healthcare, transportation and general industrial applications. It focuses primarily on product lines related to magnesium alloys, zirconium chemicals and carbon composites. Its product areas, include magnesium aerospace alloys, photo-engraving plates, zirconium chemicals for automotive catalytic converters and high-pressure composite cylinders for breathing applications and a wide variety of other uses. Its segments are Elektron and Gas Cylinders.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
LXFR has been successfully added to your 