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.
ABCO Energy's Sloan Ratio for the quarter that ended in Dec. 2022 was -16.68%.
As of Dec. 2022, ABCO Energy has a Sloan Ratio of -16.68%, indicating there is a warning stage of accrual build up.
ABCO Energy Sloan Ratio % Historical Data
The historical data trend for ABCO 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 ABCO Energy's Sloan Ratio %
For the Solar subindustry, ABCO 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.
ABCO Energy's Sloan Ratio % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, ABCO Energy's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where ABCO Energy's Sloan Ratio % falls into.
ABCO 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.
ABCO Energy's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
ABCO Energy's Net Income for the trailing twelve months (TTM) ended in Dec. 2022 was -0.281 (Mar. 2022 ) + 0.038 (Jun. 2022 ) + -0.037 (Sep. 2022 ) + 0.072 (Dec. 2022 ) = $-0.21 Mil.
ABCO Energy's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2022 was -0.179 (Mar. 2022 ) + 0.05 (Jun. 2022 ) + -0.177 (Sep. 2022 ) + 0.311 (Dec. 2022 ) = $0.01 Mil.
ABCO Energy's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2022 was -0.003 (Mar. 2022 ) + -0.021 (Jun. 2022 ) + 0.02 (Sep. 2022 ) + -0.021 (Dec. 2022 ) = $-0.03 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.
ABCO Energy (OTCPK:ABCE) 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. 2022, ABCO Energy has a Sloan Ratio of -16.68%, indicating there is a warning stage of accrual build up.
ABCO Energy Sloan Ratio % Related Terms
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ABCO Energy Inc is engaged in is in the Photo Voltaic (PV) solar systems industry, the LED and energy-efficient commercial lighting business and is an electrical product and services supplier. It sells and installs Solar Photovoltaic electric systems that allow the customer to produce their own power on their residence or business property. These products are installed by its crews and are purchased from both USA and offshore manufacturers. It has available and utilizes many suppliers of US-manufactured solar products from such companies as Mia Soleil, Canadian Solar, Westinghouse Solar and various Italian, Korean, German and Chinese suppliers. It offers solar leasing and long-term financing programs that are offered to ABCO customers and other marketing and installation organizations.
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