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.
Kumba Iron Ore's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.00%.
As of Dec. 2023, Kumba Iron Ore has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Kumba Iron Ore Sloan Ratio % Historical Data
The historical data trend for Kumba Iron Ore'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 Kumba Iron Ore's Sloan Ratio %
For the Steel subindustry, Kumba Iron Ore'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.
Kumba Iron Ore's Sloan Ratio % Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Kumba Iron Ore's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Kumba Iron Ore's Sloan Ratio % falls into.
Kumba Iron Ore 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.
Kumba Iron Ore's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Kumba Iron Ore's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 514.383 (Jun. 2023 ) + 702.149 (Dec. 2023 ) = $1,217 Mil.
Kumba Iron Ore's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 791.366 (Jun. 2023 ) + 0 (Dec. 2023 ) = $791 Mil.
Kumba Iron Ore's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -266.474 (Jun. 2023 ) + -260.562 (Dec. 2023 ) = $-527 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.
Kumba Iron Ore (OTCPK:KIROY) 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, Kumba Iron Ore has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Kumba Iron Ore Sloan Ratio % Related Terms
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Kumba Iron Ore (Kumba Iron Ore) Business Description
Kumba Iron Ore Ltd is engaged in the exploration, mining, processing blending and sale of iron ore to the global steel industry. The company primarily operates in South Africa, with mining operations in the Northern Cape and Limpopo provinces, as well as a head office in Centurion, Gauteng, and a port operation in Saldanha Bay, Western Cape. The company's flagship asset is the Sishen mine, which it holds a majority stake, located near the town of Kathu in the Northern Cape Province. The Sishen mine is an opencast mine and produces the bulk of the group's iron ore, most of which is exported. It also holds interest in Kolomela mine.
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