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.
BCE's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.11%.
As of Dec. 2023, BCE has a Sloan Ratio of 0.11%, indicating the company is in the safe zone and there is no funny business with accruals.
BCE Sloan Ratio % Historical Data
The historical data trend for BCE'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 Telecom Services subindustry, BCE'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.
BCE Sloan Ratio % Distribution
For the Telecommunication Services industry and Communication Services sector, BCE's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where BCE's Sloan Ratio % falls into.
BCE 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.
BCE's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
BCE's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 563.473 (Mar. 2023 ) + 282.252 (Jun. 2023 ) + 507.723 (Sep. 2023 ) + 320.513 (Dec. 2023 ) = $1,674 Mil.
BCE's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 911.35 (Mar. 2023 ) + 1780.069 (Jun. 2023 ) + 1449.265 (Sep. 2023 ) + 1768.784 (Dec. 2023 ) = $5,909 Mil.
BCE's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -797.34 (Mar. 2023 ) + -1095.89 (Jun. 2023 ) + -869.115 (Sep. 2023 ) + -1533.989 (Dec. 2023 ) = $-4,296 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.
BCE (NYSE:BCE) 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, BCE has a Sloan Ratio of 0.11%, indicating the company is in the safe zone and there is no funny business with accruals.
BCE Sloan Ratio % Related Terms
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BCE provides wireless, broadband, television, and landline phone services in Canada. It is one of the big three national wireless carriers, with its roughly 10 million customers constituting about 30% of the market. It is also the ILEC (incumbent local exchange carrier—the legacy telephone provider) throughout much of the eastern half of Canada, including in the most populous Canadian provinces: Ontario and Quebec. Additionally, BCE has a media segment, which holds television, radio, and digital media assets. BCE licenses the Canadian rights to movie channels including HBO, Showtime, and Starz. In 2022, the wireline segment made up 52% of total EBITDA, while wireless was 31% and media provided the remainder.
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