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.
Mueller Industries's Sloan Ratio for the quarter that ended in Mar. 2024 was -11.09%.
As of Mar. 2024, Mueller Industries has a Sloan Ratio of -11.09%, indicating there is a warning stage of accrual build up.
Mueller Industries Sloan Ratio % Historical Data
The historical data trend for Mueller Industries'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 Mueller Industries's Sloan Ratio %
For the Metal Fabrication subindustry, Mueller Industries'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.
Mueller Industries's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Mueller Industries's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Mueller Industries's Sloan Ratio % falls into.
Mueller Industries 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.
Mueller Industries's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Mueller Industries's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 177.711 (Jun. 2023 ) + 132.709 (Sep. 2023 ) + 119.238 (Dec. 2023 ) + 138.363 (Mar. 2024 ) = $568 Mil.
Mueller Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 139.212 (Jun. 2023 ) + 247.66 (Sep. 2023 ) + 174.276 (Dec. 2023 ) + 173.625 (Mar. 2024 ) = $735 Mil.
Mueller Industries's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 56.79 (Jun. 2023 ) + -13.879 (Sep. 2023 ) + 40.963 (Dec. 2023 ) + 70.437 (Mar. 2024 ) = $154 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.
Mueller Industries (NYSE:MLI) 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 Mar. 2024, Mueller Industries has a Sloan Ratio of -11.09%, indicating there is a warning stage of accrual build up.
Mueller Industries Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Mueller Industries's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Mueller Industries (Mueller Industries) Business Description
Mueller Industries Inc makes copper, brass, aluminum, and plastic products. The company reports three business segments: piping systems, industrial metals, and climate. Piping systems, earning most of the company's revenue, produces tubes, fittings, rods, valves, and other products and operates various firms worldwide. The industrial metals segment manufactures impacts and micro-gauge, brass rod and copper bar products, and brass value-added products. The climate segment produces items used to create temperature-control goods, including valves, twisted tubes, coaxial heat exchangers, and others. Numerous systems use the aforementioned products, including HVAC, water distribution, refrigeration, and automotive. Most sales derive from the United States, but the company operates worldwide.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
MLI has been successfully added to your 