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.
Columbus McKinnon's Sloan Ratio for the quarter that ended in Dec. 2023 was 4.43%.
As of Dec. 2023, Columbus McKinnon has a Sloan Ratio of 4.43%, indicating the company is in the safe zone and there is no funny business with accruals.
Columbus McKinnon Sloan Ratio % Historical Data
The historical data trend for Columbus McKinnon'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 Columbus McKinnon's Sloan Ratio %
For the Farm & Heavy Construction Machinery subindustry, Columbus McKinnon'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.
Columbus McKinnon's Sloan Ratio % Distribution in the Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Columbus McKinnon's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Columbus McKinnon's Sloan Ratio % falls into.
Columbus McKinnon 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.
Columbus McKinnon's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
Columbus McKinnon's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 13.895 (Mar. 2023 ) + 9.275 (Jun. 2023 ) + 15.813 (Sep. 2023 ) + 9.728 (Dec. 2023 ) = $49 Mil.
Columbus McKinnon's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 66.734 (Mar. 2023 ) + -17.247 (Jun. 2023 ) + 16.689 (Sep. 2023 ) + 29.149 (Dec. 2023 ) = $95 Mil.
Columbus McKinnon's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -3.02 (Mar. 2023 ) + -112.684 (Jun. 2023 ) + -6.345 (Sep. 2023 ) + -6.936 (Dec. 2023 ) = $-129 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.
Columbus McKinnon (NAS:CMCO) 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, Columbus McKinnon has a Sloan Ratio of 4.43%, indicating the company is in the safe zone and there is no funny business with accruals.
Columbus McKinnon Sloan Ratio % Related Terms
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Columbus McKinnon (Columbus McKinnon) Business Description
Columbus McKinnon Corp is a designer, manufacturer and marketer of intelligent motion solutions, including motion control products, technologies, automated systems and services, that efficiently and ergonomically move, lift, position and secure materials. Its key products include hoists, crane components, precision conveyors, actuators, rigging tools, light rail workstations, and digital power and motion control systems. The company's targeted market verticals include general industries, mobile industries, energy and utilities, process industries, industrial automation, construction and infrastructure, food processing, entertainment, life sciences, consumer packaged goods and e-commerce/supply chain/warehousing.
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