What is Babcock & Wilcox Enterprises Sloan Ratio %?
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.
* 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 Babcock & Wilcox Enterprises's Sloan Ratio %
For the Specialty Industrial Machinery subindustry, Babcock & Wilcox Enterprises'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.
Babcock & Wilcox Enterprises's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Babcock & Wilcox Enterprises's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Babcock & Wilcox Enterprises's Sloan Ratio % falls into.
Babcock & Wilcox Enterprises 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.
Babcock & Wilcox Enterprises's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -12.496 (Mar. 2023 ) + -5.088 (Jun. 2023 ) + -116.884 (Sep. 2023 ) + -62.74 (Dec. 2023 ) = $-197 Mil.
Babcock & Wilcox Enterprises's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -12.881 (Mar. 2023 ) + -9.37 (Jun. 2023 ) + -28.222 (Sep. 2023 ) + 8.203 (Dec. 2023 ) = $-42 Mil.
Babcock & Wilcox Enterprises's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -2.157 (Mar. 2023 ) + -2.007 (Jun. 2023 ) + -4.425 (Sep. 2023 ) + 0.651 (Dec. 2023 ) = $-8 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.
Babcock & Wilcox Enterprises (NYSE:BW) 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, Babcock & Wilcox Enterprises has a Sloan Ratio of -18.95%, indicating there is a warning stage of accrual build up.
Babcock & Wilcox Enterprises Sloan Ratio % Related Terms
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Babcock & Wilcox Enterprises (Babcock & Wilcox Enterprises) Business Description
Babcock & Wilcox Enterprises is a power generation equipment supplier and servicing company that operates in three segments: B&W Renewable, B&W Environmental, and B&W Thermal. B&W Thermal, which focuses on steam generation products and solutions for plants in the power generation, oil and gas, and industrial sectors, generates the majority of the company's revenue. B&W Renewable focuses on sustainable power and heat generation while B&W Environmental focuses on emissions control. The company's customer base spans the industrial, electrical utility, and municipal industries located predominantly in the United States, Canada, Denmark, and the United Kingdom. Business in the U.S. contributes the vast majority of its revenue.
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