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.
Highwater Ethanol LLC's Sloan Ratio for the quarter that ended in Jan. 2024 was -12.95%.
As of Jan. 2024, Highwater Ethanol LLC has a Sloan Ratio of -12.95%, indicating there is a warning stage of accrual build up.
Highwater Ethanol LLC Sloan Ratio % Historical Data
The historical data trend for Highwater Ethanol LLC'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 Highwater Ethanol LLC's Sloan Ratio %
For the Oil & Gas Refining & Marketing subindustry, Highwater Ethanol LLC'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.
Highwater Ethanol LLC's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Highwater Ethanol LLC's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Highwater Ethanol LLC's Sloan Ratio % falls into.
Highwater Ethanol LLC 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.
Highwater Ethanol LLC's Sloan Ratio for the fiscal year that ended in Oct. 2023 is calculated as
Highwater Ethanol LLC's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was 1.748 (Apr. 2023 ) + 6.705 (Jul. 2023 ) + 5.955 (Oct. 2023 ) + 0.826 (Jan. 2024 ) = $15.2 Mil.
Highwater Ethanol LLC's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was 1.889 (Apr. 2023 ) + 7.202 (Jul. 2023 ) + 20.829 (Oct. 2023 ) + -0.944 (Jan. 2024 ) = $29.0 Mil.
Highwater Ethanol LLC's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -0.941 (Apr. 2023 ) + -0.507 (Jul. 2023 ) + -0.289 (Oct. 2023 ) + -1.548 (Jan. 2024 ) = $-3.3 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.
Highwater Ethanol LLC (GREY:HEOL) 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, Highwater Ethanol LLC has a Sloan Ratio of -12.95%, indicating there is a warning stage of accrual build up.
Highwater Ethanol LLC Sloan Ratio % Related Terms
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Highwater Ethanol LLC (Highwater Ethanol LLC) Business Description
Highwater Ethanol LLC is engaged in the production of ethanol and distillers grains at the plant. It focuses on the manufacturing and marketing of fuel-grade ethanol and the co-products of the ethanol production process. Its products include fuel-grade ethanol, distillers grains, and corn oil. The company produces and sells fuel ethanol and co-products of the fuel ethanol production process in the continental United States.
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