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.
* 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 ArcelorMittal South Africa's Sloan Ratio %
For the Steel subindustry, ArcelorMittal South Africa'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.
ArcelorMittal South Africa's Sloan Ratio % Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, ArcelorMittal South Africa's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where ArcelorMittal South Africa's Sloan Ratio % falls into.
ArcelorMittal South Africa 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.
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
ArcelorMittal South Africa's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -359 (Jun. 2023 ) + -3561 (Dec. 2023 ) = R-3,920 Mil.
ArcelorMittal South Africa's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 287 (Jun. 2023 ) + 691 (Dec. 2023 ) = R978 Mil.
ArcelorMittal South Africa's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -818 (Jun. 2023 ) + -571 (Dec. 2023 ) = R-1,389 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.
ArcelorMittal South Africa (JSE:ACL) 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 Dec. 2023, ArcelorMittal South Africa has a Sloan Ratio of -12.05%, indicating there is a warning stage of accrual build up.
ArcelorMittal South Africa Sloan Ratio % Related Terms
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ArcelorMittal South Africa (JSE:ACL) Business Description
ArcelorMittal South Africa Ltd is a South Africa-based steel-producing company. The company's operating segments include Steel operations; Non-steel operations; Corporate and others. It generates the majority of total revenue from the Steel segment. The product range consists of hot-rolled coil, plate, coiled rounds, flats, reinforced bars, rounds, billets and channels, and commercial coke among others. The group operates mainly in South Africa. Export sales are mostly sold in sub-Saharan Africa, Asia, Europe, and America.
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