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.
Haynes International's Sloan Ratio for the quarter that ended in Mar. 2024 was 3.60%.
As of Mar. 2024, Haynes International has a Sloan Ratio of 3.60%, indicating the company is in the safe zone and there is no funny business with accruals.
Haynes International Sloan Ratio % Historical Data
The historical data trend for Haynes International'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 Haynes International's Sloan Ratio %
For the Metal Fabrication subindustry, Haynes International'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.
Haynes International's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Haynes International's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Haynes International's Sloan Ratio % falls into.
Haynes International 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.
Haynes International's Sloan Ratio for the fiscal year that ended in Sep. 2023 is calculated as
Haynes International's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 8.759 (Jun. 2023 ) + 13.128 (Sep. 2023 ) + 7.702 (Dec. 2023 ) + 8.551 (Mar. 2024 ) = $38.1 Mil.
Haynes International's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 13.662 (Jun. 2023 ) + -10.652 (Sep. 2023 ) + -7.099 (Dec. 2023 ) + 37.132 (Mar. 2024 ) = $33.0 Mil.
Haynes International's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -4.478 (Jun. 2023 ) + -4.627 (Sep. 2023 ) + -3.32 (Dec. 2023 ) + -7.576 (Mar. 2024 ) = $-20.0 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.
Haynes International (NAS:HAYN) 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, Haynes International has a Sloan Ratio of 3.60%, indicating the company is in the safe zone and there is no funny business with accruals.
Haynes International Sloan Ratio % Related Terms
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Haynes International (Haynes International) Business Description
Haynes International Inc is a producer of high-performance nickel and cobalt-based alloys. The company is focused on developing, manufacturing, marketing, and distributing technology and high-performance alloys. The company operates in a single segment: the design, manufacture, marketing, and distribution of technologically advanced, high-performance alloys for use in the aerospace, industrial gas turbine, chemical processing, and other industries Geographically, it derives a majority of revenue from the United States and also has a presence in Europe, China, and other countries.
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