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.
* 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 Enlight Renewable Energy's Sloan Ratio %
For the Utilities - Renewable subindustry, Enlight Renewable Energy'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.
Enlight Renewable Energy's Sloan Ratio % Distribution in the Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Enlight Renewable Energy's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Enlight Renewable Energy's Sloan Ratio % falls into.
Enlight Renewable Energy 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.
Enlight Renewable Energy's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Enlight Renewable Energy's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 53.221 (Jun. 2023 ) + 83.255 (Sep. 2023 ) + 35.221 (Dec. 2023 ) + 61.329 (Mar. 2024 ) = ₪233 Mil.
Enlight Renewable Energy's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 143.994 (Jun. 2023 ) + 113.072 (Sep. 2023 ) + 87.487 (Dec. 2023 ) + 128.888 (Mar. 2024 ) = ₪473 Mil.
Enlight Renewable Energy's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -925.553 (Jun. 2023 ) + -1198.132 (Sep. 2023 ) + -356.839 (Dec. 2023 ) + -865.813 (Mar. 2024 ) = ₪-3,346 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.
Enlight Renewable Energy (XTAE:ENLT) 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, Enlight Renewable Energy has a Sloan Ratio of 18.32%, indicating there is a warning stage of accrual build up.
Enlight Renewable Energy Sloan Ratio % Related Terms
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Enlight Renewable Energy (XTAE:ENLT) Business Description
Enlight Renewable Energy Ltd is a green energy company. It specializes in initiating, developing, financing, constructing, managing, and operating electricity production projects involved in generating electricity from renewable energy sources. It also provides installation services. The company's segments are Photovoltaic Israel, Israel wind, Eastern Europe wind, Eastern Europe Photovoltaic, Western Europe wind energy, and Management and construction. The company generates the majority of its revenue from its Photovoltaic business in Israel and Eastern Europe.
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