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.
Lightning eMotors's Sloan Ratio for the quarter that ended in Sep. 2023 was -19.53%.
Warning Sign:
When sloan ratio (88.89)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Sep. 2023, Lightning eMotors has a Sloan Ratio of -19.53%, indicating earnings are more likely to be made up of accruals.
Lightning eMotors Sloan Ratio % Historical Data
The historical data trend for Lightning eMotors'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 Lightning eMotors's Sloan Ratio %
For the Farm & Heavy Construction Machinery subindustry, Lightning eMotors'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.
Lightning eMotors's Sloan Ratio % Distribution in the Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Lightning eMotors's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Lightning eMotors's Sloan Ratio % falls into.
Lightning eMotors 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.
Lightning eMotors's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
Lightning eMotors's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was -8.581 (Dec. 2022 ) + -23.435 (Mar. 2023 ) + -21.448 (Jun. 2023 ) + -50.672 (Sep. 2023 ) = $-104.14 Mil.
Lightning eMotors's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was -37.537 (Dec. 2022 ) + -18.851 (Mar. 2023 ) + -24.849 (Jun. 2023 ) + -6.186 (Sep. 2023 ) = $-87.42 Mil.
Lightning eMotors's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was -2.225 (Dec. 2022 ) + -1.673 (Mar. 2023 ) + -0.866 (Jun. 2023 ) + -1.071 (Sep. 2023 ) = $-5.84 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.
Lightning eMotors (OTCPK:ZEVY) 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 Sep. 2023, Lightning eMotors has a Sloan Ratio of -19.53%, indicating earnings are more likely to be made up of accruals.
Lightning eMotors Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Lightning eMotors's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Lightning eMotors (Lightning eMotors) Business Description
Lightning eMotors Inc is engaged in designing and manufacturing zero-emission commercial trucks and buses and charging infrastructure solutions for fleets, large enterprises, original equipment manufacturers, and governments. Its product offerings range from cargo vans, transit and shuttle buses, school buses, specialty work trucks, ambulances, and electric powertrains for school buses, transit buses, and motor coaches. Its product solutions help its customers reduce their greenhouse gas emissions, lower operating costs and improve energy efficiency.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
ZEVY has been successfully added to your 