Trafford Resources (ASX:TRF) Sloan Ratio % : -121.76% (As of Dec. 2014)

Trafford Resources Sloan Ratio % Chart

Trafford Resources Annual Data
	Trend	Jun06	Jun07	Jun08	Jun09	Jun10	Jun11	Jun12	Jun13	Jun14
Sloan Ratio %		Get a 7-Day Free Trial				19.92	46.74	-0.65	-111.44	0.71

Trafford Resources Semi-Annual Data
	Dec05	Jun06	Dec06	Jun07	Dec07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14
Sloan Ratio %	Get a 7-Day Free Trial														-28.51	-111.41	-59.56	0.71	-121.76

Competitive Comparison of Trafford Resources's Sloan Ratio %

For the Other Industrial Metals & Mining subindustry, Trafford 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.

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

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

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

Trafford 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.

Trafford Resources's Sloan Ratio for the fiscal year that ended in Jun. 2014 is calculated as

Trafford Resources's Sloan Ratio for the quarter that ended in Dec. 2014 is calculated as

For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data. Trafford Resources's Net Income for the trailing twelve months (TTM) ended in Dec. 2014 was -3.768 (Jun. 2014 ) + -1.323 (Dec. 2014 ) = A$-5.09 Mil.
Trafford Resources's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2014 was -0.358 (Jun. 2014 ) + -0.108 (Dec. 2014 ) = A$-0.47 Mil.
Trafford Resources's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2014 was 0.107 (Jun. 2014 ) + -0.009 (Dec. 2014 ) = A$0.10 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.

Trafford Resources  (ASX:TRF) 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 Dec. 2014, Trafford Resources has a Sloan Ratio of -121.76%, indicating there is a warning stage of accrual build up.

Trafford Resources Sloan Ratio % Related Terms

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Trafford Resources (ASX:TRF) Business Description