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.
Dycom Industries's Sloan Ratio for the quarter that ended in Jan. 2024 was 10.57%.
As of Jan. 2024, Dycom Industries has a Sloan Ratio of 10.57%, indicating there is a warning stage of accrual build up.
Dycom Industries Sloan Ratio % Historical Data
The historical data trend for Dycom Industries'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 Dycom Industries's Sloan Ratio %
For the Engineering & Construction subindustry, Dycom Industries'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.
Dycom Industries's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Dycom Industries's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Dycom Industries's Sloan Ratio % falls into.
Dycom Industries 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.
Dycom Industries's Sloan Ratio for the fiscal year that ended in Jan. 2024 is calculated as
Dycom Industries's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was 51.523 (Apr. 2023 ) + 60.246 (Jul. 2023 ) + 83.736 (Oct. 2023 ) + 23.418 (Jan. 2024 ) = $219 Mil.
Dycom Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was -85.117 (Apr. 2023 ) + 56.27 (Jul. 2023 ) + -37.264 (Oct. 2023 ) + 325.087 (Jan. 2024 ) = $259 Mil.
Dycom Industries's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -33.608 (Apr. 2023 ) + -39.959 (Jul. 2023 ) + -179.942 (Oct. 2023 ) + -52.654 (Jan. 2024 ) = $-306 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.
Dycom Industries (NYSE:DY) 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 Jan. 2024, Dycom Industries has a Sloan Ratio of 10.57%, indicating there is a warning stage of accrual build up.
Dycom Industries Sloan Ratio % Related Terms
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Dycom Industries (Dycom Industries) Business Description
Dycom Industries Inc is a provider of specialty contracting services to the telecommunications infrastructure and utility industries. its operating companies supply telecommunications providers with a comprehensive portfolio of specialty services, including program management; planning; engineering and design; aerial, underground, and wireless construction; maintenance; and fulfillment services and provides underground facility locating services for various utilities, including telecommunications providers, and other construction and maintenance services for electric and gas utilities. It also provides a range of construction, maintenance, and installation services, including the placement and splicing of fiber, copper, and coaxial cables. The company operates throughout the United States.
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