GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Novo Resources Corp (ASX:NVO) » Definitions » Sloan Ratio %

Novo Resources (ASX:NVO) Sloan Ratio % : -90.35% (As of Jun. 2024)


View and export this data going back to 2023. Start your Free Trial

What is Novo Resources Sloan Ratio %?

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.

Novo Resources's Sloan Ratio for the quarter that ended in Jun. 2024 was -90.35%.

Warning Sign:

When sloan ratio (-74.12)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.

As of Jun. 2024, Novo Resources has a Sloan Ratio of -90.35%, indicating earnings are more likely to be made up of accruals.


Novo Resources Sloan Ratio % Historical Data

The historical data trend for Novo Resources'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.

* Premium members only.

Novo Resources Sloan Ratio % Chart

Novo Resources Annual Data
Trend Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Dec21 Dec22 Dec23
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.02 19.49 5.77 -69.85 -74.12

Novo Resources Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -65.85 18.71 -73.11 -81.48 -90.35

Competitive Comparison of Novo Resources's Sloan Ratio %

For the Gold subindustry, Novo Resources'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.


Novo Resources's Sloan Ratio % Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Novo Resources's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Novo Resources's Sloan Ratio % falls into.



Novo Resources 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.

Novo Resources's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2023 )-Cash Flow from Operations (A: Dec. 2023 )
-Cash Flow from Investing (A: Dec. 2023 ))/Total Assets (A: Dec. 2023 )
=(-142.33--52.821
--1.64)/118.543
=-74.12%

Novo Resources's Sloan Ratio for the quarter that ended in Jun. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Jun. 2024 )
=(-125.794--35.563
-10.008)/110.945
=-90.35%

Novo Resources's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was -10.985 (Sep. 2023 ) + -101.209 (Dec. 2023 ) + -5.705 (Mar. 2024 ) + -7.895 (Jun. 2024 ) = A$-125.79 Mil.
Novo Resources's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was -47.248 (Sep. 2023 ) + 21.744 (Dec. 2023 ) + 4.334 (Mar. 2024 ) + -14.393 (Jun. 2024 ) = A$-35.56 Mil.
Novo Resources's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was -1.739 (Sep. 2023 ) + 1.722 (Dec. 2023 ) + 0.134 (Mar. 2024 ) + 9.891 (Jun. 2024 ) = A$10.01 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.


Novo Resources  (ASX:NVO) 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.

According to How to Beat the Market with the Sloan Ratio:

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 Jun. 2024, Novo Resources has a Sloan Ratio of -90.35%, indicating earnings are more likely to be made up of accruals.


Novo Resources Sloan Ratio % Related Terms

Thank you for viewing the detailed overview of Novo Resources's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.


Novo Resources Business Description

Traded in Other Exchanges
Address
1199 West Hastings Street, Vancouver, BC, CAN, V6E 3T5
Novo Resources Corp is a company engaged in the business of evaluating, acquiring, and exploring natural resource properties with a focus on gold. The organization has business interests in properties located in Australia, Canada, and the USA. Its projects include Beatons Creek Property, Millennium Property, Blue Spec; Paleo-Placer; Comet Well, and others. It has two segments Mining operations and exploration operations.

Novo Resources Headlines