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Badger Paper Mills (Badger Paper Mills) Sloan Ratio % : -21.14% (As of Jun. 2005)


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What is Badger Paper Mills 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.

Badger Paper Mills's Sloan Ratio for the quarter that ended in Jun. 2005 was -21.14%.

As of Jun. 2005, Badger Paper Mills has a Sloan Ratio of -21.14%, indicating there is a warning stage of accrual build up.


Badger Paper Mills Sloan Ratio % Historical Data

The historical data trend for Badger Paper Mills'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.

Badger Paper Mills Sloan Ratio % Chart

Badger Paper Mills Annual Data
Trend Dec95 Dec96 Dec97 Dec98 Dec99 Dec00 Dec01 Dec02 Dec03 Dec04
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -8.35 -5.34 -1.87 -0.65 -16.69

Badger Paper Mills Quarterly Data
Sep00 Dec00 Mar01 Jun01 Sep01 Dec01 Mar02 Jun02 Sep02 Dec02 Mar03 Jun03 Sep03 Dec03 Mar04 Jun04 Sep04 Dec04 Mar05 Jun05
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 -6.85 -11.71 -16.69 -13.78 -21.14

Competitive Comparison of Badger Paper Mills's Sloan Ratio %

For the Paper & Paper Products subindustry, Badger Paper Mills'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.


Badger Paper Mills's Sloan Ratio % Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Badger Paper Mills's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Badger Paper Mills's Sloan Ratio % falls into.



Badger Paper Mills 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.

Badger Paper Mills's Sloan Ratio for the fiscal year that ended in Dec. 2004 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2004 )-Cash Flow from Operations (A: Dec. 2004 )
-Cash Flow from Investing (A: Dec. 2004 ))/Total Assets (A: Dec. 2004 )
=(-7.583--1.282
--0.747)/33.272
=-16.69%

Badger Paper Mills's Sloan Ratio for the quarter that ended in Jun. 2005 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Jun. 2005 )
=(-7.12-0.18
--0.572)/31.819
=-21.14%

Badger Paper Mills's Net Income for the trailing twelve months (TTM) ended in Jun. 2005 was 0.035 (Sep. 2004 ) + -4.074 (Dec. 2004 ) + -1.041 (Mar. 2005 ) + -2.04 (Jun. 2005 ) = $-7.12 Mil.
Badger Paper Mills's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2005 was 2.14 (Sep. 2004 ) + -1.243 (Dec. 2004 ) + -1.355 (Mar. 2005 ) + 0.638 (Jun. 2005 ) = $0.18 Mil.
Badger Paper Mills's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2005 was -0.293 (Sep. 2004 ) + -0.04 (Dec. 2004 ) + -0.176 (Mar. 2005 ) + -0.063 (Jun. 2005 ) = $-0.57 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.


Badger Paper Mills  (OTCPK:BPMI) 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. 2005, Badger Paper Mills has a Sloan Ratio of -21.14%, indicating there is a warning stage of accrual build up.


Badger Paper Mills Sloan Ratio % Related Terms

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Badger Paper Mills (Badger Paper Mills) Business Description

Traded in Other Exchanges
N/A
Address
200 West Front Street, P.O. Box 149, Peshtigo, WI, USA, 54157
Badger Paper Mills Inc manufactures specialty papers and converted materials for the flexible packaging, confectionery, and food service industries. It offers full-service toll printing and in-house capabilities to add a coating to flexible packaging products.
Executives
Mark D Burish director HURLEY, BURISH, MILLIKEN S.C., 301 NORTH BROOM STREET, MADISON WI 53703

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