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.
Odfjell SE's Sloan Ratio for the quarter that ended in Mar. 2024 was -6.19%.
As of Mar. 2024, Odfjell SE has a Sloan Ratio of -6.19%, indicating the company is in the safe zone and there is no funny business with accruals.
Odfjell SE Sloan Ratio % Historical Data
The historical data trend for Odfjell SE'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 Odfjell SE's Sloan Ratio %
For the Marine Shipping subindustry, Odfjell SE'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.
Odfjell SE's Sloan Ratio % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Odfjell SE's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Odfjell SE's Sloan Ratio % falls into.
Odfjell SE 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.
Odfjell SE's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Odfjell SE's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 567.891 (Jun. 2023 ) + 556.612 (Sep. 2023 ) + 549.666 (Dec. 2023 ) + 719.5 (Mar. 2024 ) = kr2,394 Mil.
Odfjell SE's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 1074.242 (Jun. 2023 ) + 817.222 (Sep. 2023 ) + 982.075 (Dec. 2023 ) + 962.517 (Mar. 2024 ) = kr3,836 Mil.
Odfjell SE's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 79.893 (Jun. 2023 ) + 178.03 (Sep. 2023 ) + -305.848 (Dec. 2023 ) + -95.509 (Mar. 2024 ) = kr-143 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.
Odfjell SE (OSL:ODF) 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, Odfjell SE has a Sloan Ratio of -6.19%, indicating the company is in the safe zone and there is no funny business with accruals.
Odfjell SE Sloan Ratio % Related Terms
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Odfjell SE is a company engaged in the transportation and storage of bulk liquid chemicals, acids, edible oils, and other specialty products. It also owns and operates chemical tankers and tank terminals. The Company has two reportable operating segments: The Chemical Tankers involve a round-the-world service, servicing ports in Europe, North, and South America, the Middle East and Asia, Australia, and Africa, and The Tank Terminals segment offers storage of various chemical and petroleum products. It operates through various geographical regions which include North and South America, Norway, Netherlands, Australasia, Africa Middle East, and Asia, and derives a majority of its revenue from the Middle East and Asia.
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