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.
As of Mar. 2024, Custom Truck One Source has a Sloan Ratio of 7.01%, indicating the company is in the safe zone and there is no funny business with accruals.
Custom Truck One Source Sloan Ratio % Historical Data
* 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 Custom Truck One Source's Sloan Ratio %
For the Rental & Leasing Services subindustry, Custom Truck One Source'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.
Custom Truck One Source's Sloan Ratio % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Custom Truck One Source's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Custom Truck One Source's Sloan Ratio % falls into.
Custom Truck One Source 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.
Custom Truck One Source's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Custom Truck One Source's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 11.61 (Jun. 2023 ) + 9.18 (Sep. 2023 ) + 16.122 (Dec. 2023 ) + -14.335 (Mar. 2024 ) = $23 Mil.
Custom Truck One Source's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -5.011 (Jun. 2023 ) + -1.601 (Sep. 2023 ) + -28.177 (Dec. 2023 ) + -14.375 (Mar. 2024 ) = $-49 Mil.
Custom Truck One Source's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -62.949 (Jun. 2023 ) + -42.715 (Sep. 2023 ) + -30.986 (Dec. 2023 ) + -33.411 (Mar. 2024 ) = $-170 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.
Custom Truck One Source (NYSE:CTOS) 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, Custom Truck One Source has a Sloan Ratio of 7.01%, indicating the company is in the safe zone and there is no funny business with accruals.
Custom Truck One Source Sloan Ratio % Related Terms
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Custom Truck One Source (Custom Truck One Source) Business Description
Custom Truck One Source Inc is a one-stop-shop provider of specialty equipment in the electric utility transmission and distribution, forestry, telecom, waste management, rail, and infrastructure end-markets in North America. The company's segment includes Equipment Rental Solutions (ERS), Truck and Equipment Sales (TES), and Aftermarket Parts and Services (APS). It generates maximum revenue from the TES segment. Geographically, it derives a majority of revenue from the United States.
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