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.
Rocket Lab USA's Sloan Ratio for the quarter that ended in Mar. 2024 was -6.42%.
As of Mar. 2024, Rocket Lab USA has a Sloan Ratio of -6.42%, indicating the company is in the safe zone and there is no funny business with accruals.
Rocket Lab USA Sloan Ratio % Historical Data
The historical data trend for Rocket Lab USA'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 Rocket Lab USA's Sloan Ratio %
For the Aerospace & Defense subindustry, Rocket Lab USA'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.
Rocket Lab USA's Sloan Ratio % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rocket Lab USA's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Rocket Lab USA's Sloan Ratio % falls into.
Rocket Lab USA 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.
Rocket Lab USA's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Rocket Lab USA's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -45.889 (Jun. 2023 ) + -40.568 (Sep. 2023 ) + -50.497 (Dec. 2023 ) + -44.26 (Mar. 2024 ) = $-181.2 Mil.
Rocket Lab USA's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -6.064 (Jun. 2023 ) + -25.201 (Sep. 2023 ) + -42.217 (Dec. 2023 ) + -2.588 (Mar. 2024 ) = $-76.1 Mil.
Rocket Lab USA's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -6.22 (Jun. 2023 ) + -31.964 (Sep. 2023 ) + 61.171 (Dec. 2023 ) + -52.256 (Mar. 2024 ) = $-29.3 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.
Rocket Lab USA (NAS:RKLB) 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, Rocket Lab USA has a Sloan Ratio of -6.42%, indicating the company is in the safe zone and there is no funny business with accruals.
Rocket Lab USA Sloan Ratio % Related Terms
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Rocket Lab USA (Rocket Lab USA) Business Description
Rocket Lab USA Inc is engaged in space, building rockets, and spacecraft. It provides end-to-end mission services that provide frequent and reliable access to space for civil, defence, and commercial markets. It designs and manufactures the Electron and Neutron launch vehicles and Photon satellite platform. Rocket Lab's Electron launch vehicle has delivered more than 100 satellites to orbit for private and public sector organizations, enabling operations in national security, scientific research, space debris mitigation, Earth observation, climate monitoring, and communications. The business operates in two segments being Launch Services and Space systems. Geographically it serves Japan, Germany, rest of the world and earns key revenue from the United States.
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