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.
LiqTech International's Sloan Ratio for the quarter that ended in Dec. 2023 was -4.18%.
As of Dec. 2023, LiqTech International has a Sloan Ratio of -4.18%, indicating the company is in the safe zone and there is no funny business with accruals.
LiqTech International Sloan Ratio % Historical Data
The historical data trend for LiqTech International'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 LiqTech International's Sloan Ratio %
For the Pollution & Treatment Controls subindustry, LiqTech International'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.
LiqTech International's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, LiqTech International's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where LiqTech International's Sloan Ratio % falls into.
LiqTech International 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.
LiqTech International's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
LiqTech International's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -2.39 (Mar. 2023 ) + -1.555 (Jun. 2023 ) + -1.414 (Sep. 2023 ) + -3.212 (Dec. 2023 ) = $-8.57 Mil.
LiqTech International's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -2.285 (Mar. 2023 ) + -1.471 (Jun. 2023 ) + 0.783 (Sep. 2023 ) + -1.21 (Dec. 2023 ) = $-4.18 Mil.
LiqTech International's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.087 (Mar. 2023 ) + -0.203 (Jun. 2023 ) + -1.971 (Sep. 2023 ) + -0.625 (Dec. 2023 ) = $-2.89 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.
LiqTech International (NAS:LIQT) 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, LiqTech International has a Sloan Ratio of -4.18%, indicating the company is in the safe zone and there is no funny business with accruals.
LiqTech International Sloan Ratio % Related Terms
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LiqTech International (LiqTech International) Business Description
LiqTech International Inc is a clean technology company which provides technology for gas and liquid purification by manufacturing ceramic silicon carbide filters. The company is engaged in three businesses that are diesel particulate filters (DPF) for the control of soot from diesel engines, turnkey ceramic membranes systems, and complete water treatment plants. The company's product portfolio consists of ceramic silicon membranes for liquid filtration, diesel particulate filters, and kiln furniture. Its operating segment includes Water, Ceramics, and Plastics. The company generates maximum revenue from Ceramics segment. Geographically, it derives a majority of its revenue from Europe.
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