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.
Mechel PAO's Sloan Ratio for the quarter that ended in Jun. 2023 was 0.00%.
As of Jun. 2023, Mechel PAO has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Mechel PAO Sloan Ratio % Historical Data
The historical data trend for Mechel PAO'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 Mechel PAO's Sloan Ratio %
For the Steel subindustry, Mechel PAO'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.
Mechel PAO's Sloan Ratio % Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Mechel PAO's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Mechel PAO's Sloan Ratio % falls into.
Mechel PAO 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.
Mechel PAO's Sloan Ratio for the fiscal year that ended in Dec. 2021 is calculated as
Mechel PAO's Net Income for the trailing twelve months (TTM) ended in Jun. 2023 was 291.179 (Sep. 2021 ) + 371.786 (Dec. 2021 ) + 0 (Jun. 2022 ) + 0 (Jun. 2023 ) = $663 Mil.
Mechel PAO's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2023 was 178.058 (Sep. 2021 ) + 431.879 (Dec. 2021 ) + 0 (Jun. 2022 ) + 0 (Jun. 2023 ) = $610 Mil.
Mechel PAO's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2023 was -19.72 (Sep. 2021 ) + -18.246 (Dec. 2021 ) + 0 (Jun. 2022 ) + 0 (Jun. 2023 ) = $-38 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.
Mechel PAO (NYSE:MTL) 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 Jun. 2023, Mechel PAO has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Mechel PAO Sloan Ratio % Related Terms
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Mechel PAO is a vertically integrated group operating into three industrial segments Mining, Steel and Power. The mining segment produces metallurgical coal (coking coal, PCI and anthracite), steam coal, iron ore and iron ore concentrate, coke and chemical products. The segment consists of its coal, iron ore and coke production facilities in Russia. The steel segment produces and sells semi-finished steel products, long products of a wide range of steel grades, carbon and stainless flat steel products and high value-added metal products, including wire products, stampings and forgings, structural shapes, beams and rails. The power segment sells electricity and capacity to the wholesale market. The majority of the revenue is derived from the Steel segment.
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