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.
PureCycle Technologies's Sloan Ratio for the quarter that ended in Mar. 2024 was 10.99%.
As of Mar. 2024, PureCycle Technologies has a Sloan Ratio of 10.99%, indicating there is a warning stage of accrual build up.
PureCycle Technologies 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 PureCycle Technologies's Sloan Ratio %
For the Pollution & Treatment Controls subindustry, PureCycle Technologies'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.
PureCycle Technologies's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, PureCycle Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where PureCycle Technologies's Sloan Ratio % falls into.
PureCycle Technologies 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.
PureCycle Technologies's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
PureCycle Technologies's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -56.576 (Jun. 2023 ) + 4.886 (Sep. 2023 ) + -24.183 (Dec. 2023 ) + -85.607 (Mar. 2024 ) = $-161.48 Mil.
PureCycle Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -25.669 (Jun. 2023 ) + -20.906 (Sep. 2023 ) + -33.576 (Dec. 2023 ) + -39.178 (Mar. 2024 ) = $-119.33 Mil.
PureCycle Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -77.607 (Jun. 2023 ) + -30.461 (Sep. 2023 ) + -46.774 (Dec. 2023 ) + 32.027 (Mar. 2024 ) = $-122.82 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.
PureCycle Technologies (NAS:PCT) 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, PureCycle Technologies has a Sloan Ratio of 10.99%, indicating there is a warning stage of accrual build up.
PureCycle Technologies Sloan Ratio % Related Terms
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PureCycle Technologies (PureCycle Technologies) Business Description
PureCycle Technologies Inc holds a global license to commercialize the only patented solvent-based purification recycling technology, developed by The Procter & Gamble Company (P&G), for restoring waste polypropylene (PP) into a virgin-like resin. The proprietary process removes color, odor and other contaminants from recycled feedstock resulting in virgin-like polypropylene suitable for any PP market.
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