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.
Kinross Gold's Sloan Ratio for the quarter that ended in Dec. 2023 was -0.63%.
As of Dec. 2023, Kinross Gold has a Sloan Ratio of -0.63%, indicating the company is in the safe zone and there is no funny business with accruals.
Kinross Gold Sloan Ratio % Historical Data
The historical data trend for Kinross Gold'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 Kinross Gold's Sloan Ratio %
For the Gold subindustry, Kinross Gold'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.
Kinross Gold's Sloan Ratio % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Kinross Gold's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Kinross Gold's Sloan Ratio % falls into.
Kinross Gold 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.
Kinross Gold's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Kinross Gold's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 90.2 (Mar. 2023 ) + 151 (Jun. 2023 ) + 109.7 (Sep. 2023 ) + 65.4 (Dec. 2023 ) = $416 Mil.
Kinross Gold's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 259 (Mar. 2023 ) + 528.6 (Jun. 2023 ) + 406.8 (Sep. 2023 ) + 410.9 (Dec. 2023 ) = $1,605 Mil.
Kinross Gold's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -237.3 (Mar. 2023 ) + -254.4 (Jun. 2023 ) + -323 (Sep. 2023 ) + -307.5 (Dec. 2023 ) = $-1,122 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.
Kinross Gold (NYSE:KGC) 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, Kinross Gold has a Sloan Ratio of -0.63%, indicating the company is in the safe zone and there is no funny business with accruals.
Kinross Gold Sloan Ratio % Related Terms
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Kinross Gold is a Canada-based gold producer, producing roughly 2 million gold equivalent ounces in 2022. The company had about a decade of gold reserves at the end of 2022. It operates mines in the Americas and West Africa after selling its low-cost Russian operations in 2022 in response to the invasion of Ukraine. The company has historically used acquisitions to fuel expansion into new regions and production growth. In 2022, Kinross purchased the Great Bear project in Canada, which, if developed, could produce an average of more than 500,000 ounces of gold per year for at least a decade.
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