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.
As of Dec. 2023, Genco Shipping & Trading has a Sloan Ratio of -1.14%, indicating the company is in the safe zone and there is no funny business with accruals.
Genco Shipping & Trading 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 Genco Shipping & Trading's Sloan Ratio %
For the Marine Shipping subindustry, Genco Shipping & Trading'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.
Genco Shipping & Trading's Sloan Ratio % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Genco Shipping & Trading's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Genco Shipping & Trading's Sloan Ratio % falls into.
Genco Shipping & Trading 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.
Genco Shipping & Trading's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Genco Shipping & Trading's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 2.634 (Mar. 2023 ) + 11.562 (Jun. 2023 ) + -32.004 (Sep. 2023 ) + 4.938 (Dec. 2023 ) = $-12.9 Mil.
Genco Shipping & Trading's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 19.566 (Mar. 2023 ) + 19.382 (Jun. 2023 ) + 13.218 (Sep. 2023 ) + 39.618 (Dec. 2023 ) = $91.8 Mil.
Genco Shipping & Trading's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -2.853 (Mar. 2023 ) + -0.678 (Jun. 2023 ) + 0.238 (Sep. 2023 ) + -88.331 (Dec. 2023 ) = $-91.6 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.
Genco Shipping & Trading (NYSE:GNK) 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, Genco Shipping & Trading has a Sloan Ratio of -1.14%, indicating the company is in the safe zone and there is no funny business with accruals.
Genco Shipping & Trading Sloan Ratio % Related Terms
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Genco Shipping & Trading (Genco Shipping & Trading) Business Description
Genco Shipping & Trading Ltd is an international shipping company specializing in the transportation of iron ore, coal, grain, steel products and other drybulk cargoes. It is involved in the ocean transportation of drybulk cargoes. The company operates in one segment, the ocean transportation of drybulk cargoes through the ownership and operation of drybulk carrier vessels. It generates revenue through time charter agreements, spot market voyage charters, pool agreements and spot market-related time charters.
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