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, Cemex Holdings Philippines has a Sloan Ratio of 1.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Cemex Holdings Philippines 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 Cemex Holdings Philippines's Sloan Ratio %
For the Building Materials subindustry, Cemex Holdings Philippines'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.
Cemex Holdings Philippines's Sloan Ratio % Distribution in the Building Materials Industry
For the Building Materials industry and Basic Materials sector, Cemex Holdings Philippines's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Cemex Holdings Philippines's Sloan Ratio % falls into.
Cemex Holdings Philippines 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.
Cemex Holdings Philippines's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -306.361 (Jun. 2023 ) + -582.579 (Sep. 2023 ) + -780.47 (Dec. 2023 ) + -917.844 (Mar. 2024 ) = ₱-2,587 Mil.
Cemex Holdings Philippines's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -121.663 (Jun. 2023 ) + 468.951 (Sep. 2023 ) + -237.231 (Dec. 2023 ) + -297.866 (Mar. 2024 ) = ₱-188 Mil.
Cemex Holdings Philippines's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -994.141 (Jun. 2023 ) + -1179.201 (Sep. 2023 ) + 19.249 (Dec. 2023 ) + -930.772 (Mar. 2024 ) = ₱-3,085 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.
Cemex Holdings Philippines (PHS:CHP) 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, Cemex Holdings Philippines has a Sloan Ratio of 1.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Cemex Holdings Philippines Sloan Ratio % Related Terms
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Cemex Holdings Philippines (PHS:CHP) Business Description
Cemex Holdings Philippines Inc is a holding company engaged in manufacturing and marketing cement products such as ready-mix concrete and clinker, in the Philippines. The company primarily sells gray portland cement, masonry, blended cement, and ready-mix concrete. It also offers bag cement and bulk cement. The company markets its products under the brand name APO, Island, and Rizal.
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