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.
JELD-WEN Holding's Sloan Ratio for the quarter that ended in Dec. 2023 was -18.86%.
As of Dec. 2023, JELD-WEN Holding has a Sloan Ratio of -18.86%, indicating there is a warning stage of accrual build up.
JELD-WEN Holding Sloan Ratio % Historical Data
The historical data trend for JELD-WEN Holding'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 JELD-WEN Holding's Sloan Ratio %
For the Building Products & Equipment subindustry, JELD-WEN Holding'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.
JELD-WEN Holding's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, JELD-WEN Holding's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where JELD-WEN Holding's Sloan Ratio % falls into.
JELD-WEN Holding 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.
JELD-WEN Holding's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
JELD-WEN Holding's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 15.134 (Mar. 2023 ) + 38.281 (Jun. 2023 ) + 43.785 (Sep. 2023 ) + -34.755 (Dec. 2023 ) = $62 Mil.
JELD-WEN Holding's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -0.656 (Mar. 2023 ) + 154.027 (Jun. 2023 ) + 119.612 (Sep. 2023 ) + 72.205 (Dec. 2023 ) = $345 Mil.
JELD-WEN Holding's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -19.032 (Mar. 2023 ) + -23.194 (Jun. 2023 ) + 341.069 (Sep. 2023 ) + -19.669 (Dec. 2023 ) = $279 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.
JELD-WEN Holding (NYSE:JELD) 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, JELD-WEN Holding has a Sloan Ratio of -18.86%, indicating there is a warning stage of accrual build up.
JELD-WEN Holding Sloan Ratio % Related Terms
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JELD-WEN Holding (JELD-WEN Holding) Business Description
JELD-WEN Holding Inc is engaged in door and window manufacturing. The company design, produce and distribute interior and exterior building product, offering a selection of doors, windows, walls, and related products. The products are used in the new construction of residential single and multi-family homes and non-residential buildings. The firm's operating segments are North America, Europe, and Australasia. It generates a majority of its revenue from North America.
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