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.
As of Mar. 2024, Electrolux Professional AB has a Sloan Ratio of 3.91%, indicating the company is in the safe zone and there is no funny business with accruals.
Electrolux Professional AB Sloan Ratio % Historical Data
* 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 Electrolux Professional AB's Sloan Ratio %
For the Specialty Industrial Machinery subindustry, Electrolux Professional AB'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.
Electrolux Professional AB's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Electrolux Professional AB's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Electrolux Professional AB's Sloan Ratio % falls into.
Electrolux Professional AB 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.
Electrolux Professional AB's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 257 (Jun. 2023 ) + 159 (Sep. 2023 ) + 169 (Dec. 2023 ) + 171 (Mar. 2024 ) = kr756 Mil.
Electrolux Professional AB's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 305 (Jun. 2023 ) + 317 (Sep. 2023 ) + 531 (Dec. 2023 ) + 160 (Mar. 2024 ) = kr1,313 Mil.
Electrolux Professional AB's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -26 (Jun. 2023 ) + -57 (Sep. 2023 ) + -87 (Dec. 2023 ) + -932 (Mar. 2024 ) = kr-1,102 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.
Electrolux Professional AB (OSTO:EPRO B) 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, Electrolux Professional AB has a Sloan Ratio of 3.91%, indicating the company is in the safe zone and there is no funny business with accruals.
Electrolux Professional AB Sloan Ratio % Related Terms
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Electrolux Professional AB (OSTO:EPRO B) Business Description
Electrolux Professional AB is a provider of food service, beverage, and laundry solutions, serving a wide range of customers globally, from restaurants and hotels to healthcare, educational, and other service facilities. The company's products include Combi ovens; Boiling & braising pans; Fry tops; Slicers & food processors; Planetary mixers; Vacuum packers & sealers; Refrigerated counters; Blast chillers; Waste management systems; Coffee grinders; hot, cold, and frozen beverages dispensers; Beer dispensing systems; and others. Its geographical segments are Europe; the Asia Pacific, the Middle East, Africa; and the Americas, of which the majority of its revenue comes from Europe.
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