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.
voestalpine AG's Sloan Ratio for the quarter that ended in Dec. 2023 was -2.41%.
As of Dec. 2023, voestalpine AG has a Sloan Ratio of -2.41%, indicating the company is in the safe zone and there is no funny business with accruals.
voestalpine AG Sloan Ratio % Historical Data
The historical data trend for voestalpine AG'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 voestalpine AG's Sloan Ratio %
For the Steel subindustry, voestalpine AG'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.
voestalpine AG's Sloan Ratio % Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, voestalpine AG's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where voestalpine AG's Sloan Ratio % falls into.
voestalpine AG 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.
voestalpine AG's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
voestalpine AG's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 278.2 (Mar. 2023 ) + 176.8 (Jun. 2023 ) + 94.9 (Sep. 2023 ) + 75.9 (Dec. 2023 ) = €626 Mil.
voestalpine AG's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 1312.1 (Mar. 2023 ) + 9.6 (Jun. 2023 ) + 381.2 (Sep. 2023 ) + 282.4 (Dec. 2023 ) = €1,985 Mil.
voestalpine AG's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -396.6 (Mar. 2023 ) + -415.3 (Jun. 2023 ) + -122.2 (Sep. 2023 ) + -25.1 (Dec. 2023 ) = €-959 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.
voestalpine AG (WBO:VOE) 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 Dec. 2023, voestalpine AG has a Sloan Ratio of -2.41%, indicating the company is in the safe zone and there is no funny business with accruals.
voestalpine AG Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of voestalpine AG's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
voestalpine AG is an Austria-based holding company engaged in the manufacturing, processing and development of steel products. The company is divided into four divisions. The Steel Division is involved in the production of steel products and the casting of large turbines. The High-Performance metals Division provides metals for the automotive, consumer goods, power generation, energy and aviation sectors. The Metal Engineering division produces rails, turnout systems, track-based monitoring systems, specially treated wire and others. The Metal Forming Division provides customized special and precision sections, as well as solutions for systems in the construction, cab construction for commercial vehicles, and aviation sectors. The company generates its revenue from the European Union.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
WBO:VOE has been successfully added to your 