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.
CSW Industrials's Sloan Ratio for the quarter that ended in Dec. 2023 was -5.92%.
As of Dec. 2023, CSW Industrials has a Sloan Ratio of -5.92%, indicating the company is in the safe zone and there is no funny business with accruals.
CSW Industrials Sloan Ratio % Historical Data
The historical data trend for CSW Industrials'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 CSW Industrials's Sloan Ratio %
For the Specialty Industrial Machinery subindustry, CSW Industrials'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.
CSW Industrials's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, CSW Industrials's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where CSW Industrials's Sloan Ratio % falls into.
CSW Industrials 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.
CSW Industrials's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
CSW Industrials's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 27.063 (Mar. 2023 ) + 30.611 (Jun. 2023 ) + 30.055 (Sep. 2023 ) + 9.222 (Dec. 2023 ) = $97.0 Mil.
CSW Industrials's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 37.381 (Mar. 2023 ) + 50.257 (Jun. 2023 ) + 44.679 (Sep. 2023 ) + 46.978 (Dec. 2023 ) = $179.3 Mil.
CSW Industrials's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -8.444 (Mar. 2023 ) + -5.071 (Jun. 2023 ) + -3.63 (Sep. 2023 ) + -6.429 (Dec. 2023 ) = $-23.6 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.
CSW Industrials (NAS:CSWI) 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, CSW Industrials has a Sloan Ratio of -5.92%, indicating the company is in the safe zone and there is no funny business with accruals.
CSW Industrials Sloan Ratio % Related Terms
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CSW Industrials (CSW Industrials) Business Description
CSW Industrials Inc is a diversified industrial growth company with well-established, scalable platforms and domain expertise across three segments, Contractor Solutions, Engineered Building Solutions, and Specialized Reliability Solutions. The company's Contractor Solutions segment involves manufacturing efficient and performance-enhancing products for residential and commercial HVAC/R and plumbing applications, which are designed for professional end-use customers. Majority of the company revenue is generated from Contractor Solutions segment from US markets.
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