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.
Suedzucker AG's Sloan Ratio for the quarter that ended in Nov. 2023 was 4.01%.
As of Nov. 2023, Suedzucker AG has a Sloan Ratio of 4.01%, indicating the company is in the safe zone and there is no funny business with accruals.
Suedzucker AG Sloan Ratio % Historical Data
The historical data trend for Suedzucker AG'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 Suedzucker AG's Sloan Ratio %
For the Packaged Foods subindustry, Suedzucker AG'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.
Suedzucker AG's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Suedzucker AG's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Suedzucker AG's Sloan Ratio % falls into.
Suedzucker AG 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.
Suedzucker AG's Sloan Ratio for the fiscal year that ended in Feb. 2023 is calculated as
Suedzucker AG's Net Income for the trailing twelve months (TTM) ended in Nov. 2023 was 135.7 (Feb. 2023 ) + 171 (May. 2023 ) + 189 (Aug. 2023 ) + 171 (Nov. 2023 ) = €667 Mil.
Suedzucker AG's Cash Flow from Operations for the trailing twelve months (TTM) ended in Nov. 2023 was -46.5 (Feb. 2023 ) + -3 (May. 2023 ) + 371 (Aug. 2023 ) + 416 (Nov. 2023 ) = €738 Mil.
Suedzucker AG's Cash Flow from Investing for the trailing twelve months (TTM) ended in Nov. 2023 was -175.9 (Feb. 2023 ) + -82 (May. 2023 ) + -260 (Aug. 2023 ) + 47 (Nov. 2023 ) = €-471 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.
Suedzucker AG (HAM:SZU) 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 Nov. 2023, Suedzucker AG has a Sloan Ratio of 4.01%, indicating the company is in the safe zone and there is no funny business with accruals.
Suedzucker AG Sloan Ratio % Related Terms
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Suedzucker AG has five major segments: Sugar, Special products, Crop energies, starch and Fruit. The Sugar segment produces Sugar, sugar specialty products, animal feed, and fertilizer. Special products produce frozen pizzas, baguettes, snacks, pasta, food ingredients, animal feed, starch, and pharmaceuticals. Crop energies produce bioethanol, protein-based food, and liquid carbon dioxide. The fruit segment makes juice concentrates, pure juice, wines, and beverage bases. Suedzucker sells its products to retailers and companies in the food, beverage, agriculture, paper, textile, chemicals, pharmaceuticals, cosmetics, animal feed, and petroleum industries. Germany is Suedzucker's biggest market, and the firm generates most of its revenue in European Union countries.
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