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 Aug. 2023, Environmental Tectonics has a Sloan Ratio of 8.64%, indicating the company is in the safe zone and there is no funny business with accruals.
Environmental Tectonics 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 Environmental Tectonics's Sloan Ratio %
For the Aerospace & Defense subindustry, Environmental Tectonics'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.
Environmental Tectonics's Sloan Ratio % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Environmental Tectonics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Environmental Tectonics's Sloan Ratio % falls into.
Environmental Tectonics 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.
Environmental Tectonics's Sloan Ratio for the fiscal year that ended in Feb. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Environmental Tectonics's Net Income for the trailing twelve months (TTM) ended in Aug. 2023 was -2.135 (Feb. 2023 ) + -1.498 (Aug. 2023 ) = $-3.63 Mil.
Environmental Tectonics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Aug. 2023 was -8.219 (Feb. 2023 ) + -5.888 (Aug. 2023 ) = $-14.11 Mil.
Environmental Tectonics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Aug. 2023 was 7.086 (Feb. 2023 ) + -0.182 (Aug. 2023 ) = $6.90 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.
Environmental Tectonics (OTCPK:ETCC) 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 Aug. 2023, Environmental Tectonics has a Sloan Ratio of 8.64%, indicating the company is in the safe zone and there is no funny business with accruals.
Environmental Tectonics Sloan Ratio % Related Terms
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Environmental Tectonics (Environmental Tectonics) Business Description
Environmental Tectonics Corp is an environmental simulation company that provides training equipment, emergency response training simulators, and commercial equipment for the automotive, healthcare, and medical device industries. It operates in two primary business segments, Aerospace Solutions, and Commercial/Industrial Systems (CIS). Aerospace encompasses the design, manufacture, and sale of aircrew training systems products; altitude (hypobaric) chambers; hyperbaric chambers as well as integrated logistics support. CIS encompasses the design, manufacture, and sale of steam and gas sterilizers, environmental testing and simulation devices, and hyperbaric chambers. Aerospace Solutions segment is the major revenue contributor to the company.
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