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.
Deutsche Telekom AG's Sloan Ratio for the quarter that ended in Dec. 2023 was -3.19%.
As of Dec. 2023, Deutsche Telekom AG has a Sloan Ratio of -3.19%, indicating the company is in the safe zone and there is no funny business with accruals.
Deutsche Telekom AG Sloan Ratio % Historical Data
The historical data trend for Deutsche Telekom 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 Deutsche Telekom AG's Sloan Ratio %
For the Telecom Services subindustry, Deutsche Telekom 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.
Deutsche Telekom AG's Sloan Ratio % Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Deutsche Telekom AG's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Deutsche Telekom AG's Sloan Ratio % falls into.
Deutsche Telekom 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.
Deutsche Telekom AG's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Deutsche Telekom AG's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 16445.396 (Mar. 2023 ) + 1667.389 (Jun. 2023 ) + 2053.362 (Sep. 2023 ) + -1128.68 (Dec. 2023 ) = $19,037 Mil.
Deutsche Telekom AG's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 10233.405 (Mar. 2023 ) + 10082.34 (Jun. 2023 ) + 10343.65 (Sep. 2023 ) + 9533.261 (Dec. 2023 ) = $40,193 Mil.
Deutsche Telekom AG's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 2146.681 (Mar. 2023 ) + -4634.886 (Jun. 2023 ) + -4084.312 (Sep. 2023 ) + -4485.278 (Dec. 2023 ) = $-11,058 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.
Deutsche Telekom AG (OTCPK:DTEGY) 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, Deutsche Telekom AG has a Sloan Ratio of -3.19%, indicating the company is in the safe zone and there is no funny business with accruals.
Deutsche Telekom AG Sloan Ratio % Related Terms
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Deutsche Telekom AG (Deutsche Telekom AG) Business Description
Deutsche Telekom is the incumbent telecom operator in Germany and remains the dominant player in both mobile and fixed markets. It also owns a controlling stake in T-Mobile US—one of three primary wireless carriers in the United States—which merged with Sprint in 2020, consolidating the market from four to three operators. Aside from its two core markets, Deutsche Telekom also has operations in several Central European countries and holds an IT arm (Systems Solutions).
Deutsche Telekom AG (Deutsche Telekom AG) Headlines
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