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.
Gatos Silver's Sloan Ratio for the quarter that ended in Mar. 2024 was 0.00%.
As of Mar. 2024, Gatos Silver has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Gatos Silver Sloan Ratio % Historical Data
The historical data trend for Gatos Silver'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 Gatos Silver's Sloan Ratio %
For the Other Precious Metals & Mining subindustry, Gatos Silver'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.
Gatos Silver's Sloan Ratio % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Gatos Silver's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Gatos Silver's Sloan Ratio % falls into.
Gatos Silver 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.
Gatos Silver's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Gatos Silver's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -3.593 (Jun. 2023 ) + 3.288 (Sep. 2023 ) + 12.33 (Dec. 2023 ) + 2.532 (Mar. 2024 ) = $14.56 Mil.
Gatos Silver's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -3.762 (Jun. 2023 ) + 33.33 (Sep. 2023 ) + 116.536 (Dec. 2023 ) + 15.136 (Mar. 2024 ) = $161.24 Mil.
Gatos Silver's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) + 0 (Mar. 2024 ) = $0.00 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.
Gatos Silver (NYSE:GATO) 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, Gatos Silver has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Gatos Silver Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Gatos Silver's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Gatos Silver Inc is a development and exploration company. It is focused on the production of Cerro Los Gatos Mine and the further exploration and development of the Los Gatos District, both located in Chihuahua, Mexico. The Los Gatos District consists of 14 mineralized zones, including three identified silver-lead-zinc deposits: the Cerro Los Gatos Mine, the Esther deposit, and the Amapola deposit. The Company's reportable segments are based on the Company's mineral interests and management structure and include Mexico and Corporate segments. The Mexico segment engages in the exploration, development, and operation of the Company's Mexican mineral interests and includes the Company's investment in its LGJV.
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