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.
Mongolia Energy's Sloan Ratio for the quarter that ended in Sep. 2023 was -65.23%.
Warning Sign:
When sloan ratio (-78.84)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Sep. 2023, Mongolia Energy has a Sloan Ratio of -65.23%, indicating earnings are more likely to be made up of accruals.
Mongolia Energy Sloan Ratio % Historical Data
The historical data trend for Mongolia Energy'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 Mongolia Energy's Sloan Ratio %
For the Coking Coal subindustry, Mongolia Energy'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.
Mongolia Energy's Sloan Ratio % Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Mongolia Energy's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Mongolia Energy's Sloan Ratio % falls into.
Mongolia Energy 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.
Mongolia Energy's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Mongolia Energy's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was -109.209 (Mar. 2023 ) + -69.852 (Sep. 2023 ) = $-179.1 Mil.
Mongolia Energy's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was 55.085 (Mar. 2023 ) + 24.751 (Sep. 2023 ) = $79.8 Mil.
Mongolia Energy's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was -16.946 (Mar. 2023 ) + -5.468 (Sep. 2023 ) = $-22.4 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.
Mongolia Energy (OTCPK:MOAEY) 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 Sep. 2023, Mongolia Energy has a Sloan Ratio of -65.23%, indicating earnings are more likely to be made up of accruals.
Mongolia Energy Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Mongolia Energy's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Mongolia Energy (Mongolia Energy) Business Description
Mongolia Energy Corp Ltd is an investment holding company. The company's principal business is coal mining and exploration which is operated by its indirect wholly-owned subsidiary in Mongolia. Its principal project is the Khushuut Coking Coal Project in Western Mongolia, it also has interest in the Gobi Altay and Olon Bulag project. The Khushuut Coal Mine is located approximately 1,350 km west of Ulaanbaatar in the Khovd Province of Western Mongolia. It is about 311 km from the Xinjiang Takeshiken border, connecting the Khushuut Road. The group is principally engaged in mining, processing and sale of coal in the PRC and Mongolia. Mongolia Energy derives all of its revenue from Coal mining. Geographically company derives a majority of its revenue from PRC.
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