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.
Saab AB's Sloan Ratio for the quarter that ended in Mar. 2024 was 3.03%.
As of Mar. 2024, Saab AB has a Sloan Ratio of 3.03%, indicating the company is in the safe zone and there is no funny business with accruals.
Saab AB Sloan Ratio % Historical Data
The historical data trend for Saab AB'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.
For the Aerospace & Defense subindustry, Saab 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.
Saab AB's Sloan Ratio % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Saab AB's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Saab AB's Sloan Ratio % falls into.
Saab 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.
Saab AB's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Saab AB's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 71.872 (Jun. 2023 ) + 58.819 (Sep. 2023 ) + 119.229 (Dec. 2023 ) + 73.958 (Mar. 2024 ) = $324 Mil.
Saab AB's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -73.265 (Jun. 2023 ) + -119.623 (Sep. 2023 ) + 470.87 (Dec. 2023 ) + -101.14 (Mar. 2024 ) = $177 Mil.
Saab AB's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 64.351 (Jun. 2023 ) + 69.284 (Sep. 2023 ) + -399.314 (Dec. 2023 ) + 166.166 (Mar. 2024 ) = $-100 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.
Saab AB (OTCPK:SAABF) 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, Saab AB has a Sloan Ratio of 3.03%, indicating the company is in the safe zone and there is no funny business with accruals.
Saab AB Sloan Ratio % Related Terms
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Saab AB supplies products and services for military, defense, and civil security. The company operates within six segments: Aeronautics, Dynamics, Surveillance, Support and Services, Industrial Products and Services, and Kockums. Aeronautics involves the manufacturing of defense and commercial aerial systems. Dynamics produces combat weapons and defense training and management systems. The Surveillance segment supplies security services. Support and Services offers solutions related to civil and military missions. IPS creates traffic management technology and aviation parts. Kockums offers solutions for naval missions. Over three quarters of its sales are from the defense sector. The company sells to multiple geographic regions, but over half of its sales come from Europe.
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