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.
Kingspan Group's Sloan Ratio for the quarter that ended in Dec. 2023 was -0.80%.
As of Dec. 2023, Kingspan Group has a Sloan Ratio of -0.80%, indicating the company is in the safe zone and there is no funny business with accruals.
Kingspan Group Sloan Ratio % Historical Data
The historical data trend for Kingspan Group'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 Kingspan Group's Sloan Ratio %
For the Building Products & Equipment subindustry, Kingspan Group'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.
Kingspan Group's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Kingspan Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Kingspan Group's Sloan Ratio % falls into.
Kingspan Group 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.
Kingspan Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Kingspan Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 344.962 (Jun. 2023 ) + 351.036 (Dec. 2023 ) = $696 Mil.
Kingspan Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 535.753 (Jun. 2023 ) + 728.135 (Dec. 2023 ) = $1,264 Mil.
Kingspan Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -282.882 (Jun. 2023 ) + -215.049 (Dec. 2023 ) = $-498 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.
Kingspan Group (OTCPK:KGSPY) 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 Dec. 2023, Kingspan Group has a Sloan Ratio of -0.80%, indicating the company is in the safe zone and there is no funny business with accruals.
Kingspan Group Sloan Ratio % Related Terms
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Kingspan Group (Kingspan Group) Business Description
Kingspan Group PLC manufactures and sells building supplies to the commercial, residential, and data storage industries throughout the world. The company organizes itself in five segments. The Insulated Panels segment, which generates the majority of revenue, sells insulated panels, structural frames, and metal facades. The Insulation segment sells insulation boards, building series insulation, and engineered timber systems. The Light and Air segment manufacture day-lighting, smoke management, and ventilation systems. The Water and Energy segment manufacture energy and water solutions and all related service activities, and Data and Flooring Technology manufacture data center storage solutions and raised access floors. and Roofing and Waterproof segment.
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