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, MasterCraft Boat Holdings has a Sloan Ratio of 5.96%, indicating the company is in the safe zone and there is no funny business with accruals.
MasterCraft Boat Holdings 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 MasterCraft Boat Holdings's Sloan Ratio %
For the Recreational Vehicles subindustry, MasterCraft Boat Holdings'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.
MasterCraft Boat Holdings's Sloan Ratio % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, MasterCraft Boat Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where MasterCraft Boat Holdings's Sloan Ratio % falls into.
MasterCraft Boat Holdings 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.
MasterCraft Boat Holdings's Sloan Ratio for the fiscal year that ended in Jun. 2023 is calculated as
MasterCraft Boat Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 22.51 (Mar. 2023 ) + 22.676 (Jun. 2023 ) + 6.195 (Sep. 2023 ) + 5.886 (Dec. 2023 ) = $57.3 Mil.
MasterCraft Boat Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 27.064 (Mar. 2023 ) + 29.234 (Jun. 2023 ) + -9.122 (Sep. 2023 ) + 27.815 (Dec. 2023 ) = $75.0 Mil.
MasterCraft Boat Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -20.778 (Mar. 2023 ) + -28.553 (Jun. 2023 ) + 21.188 (Sep. 2023 ) + -9.343 (Dec. 2023 ) = $-37.5 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.
MasterCraft Boat Holdings (NAS:MCFT) 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, MasterCraft Boat Holdings has a Sloan Ratio of 5.96%, indicating the company is in the safe zone and there is no funny business with accruals.
MasterCraft Boat Holdings Sloan Ratio % Related Terms
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MasterCraft Boat Holdings (MasterCraft Boat Holdings) Business Description
MasterCraft Boat Holdings Inc designs, manufactures, and markets performance sport boats and outboard boats. The company is based in the United States and operates in three brand-specific segments. The MasterCraft segment generates the majority of the company's revenue and includes inboard boats for water skiing, wakeboarding, and wake surfing. The NauticStar segment includes outboard boats for fishing and recreational boating. Its Crest boats are used for general recreational boating. the majority of the company's sales are made in North America.
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