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.
Teck Resources's Sloan Ratio for the quarter that ended in Dec. 2023 was 5.46%.
As of Dec. 2023, Teck Resources has a Sloan Ratio of 5.46%, indicating the company is in the safe zone and there is no funny business with accruals.
Teck Resources Sloan Ratio % Historical Data
The historical data trend for Teck Resources'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 Teck Resources's Sloan Ratio %
For the Other Industrial Metals & Mining subindustry, Teck Resources'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.
Teck Resources's Sloan Ratio % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Teck Resources's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Teck Resources's Sloan Ratio % falls into.
Teck Resources 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.
Teck Resources's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Teck Resources's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 833.151 (Mar. 2023 ) + 383.863 (Jun. 2023 ) + 203.976 (Sep. 2023 ) + 360.018 (Dec. 2023 ) = $1,781 Mil.
Teck Resources's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 798.071 (Mar. 2023 ) + 850.519 (Jun. 2023 ) + 543.936 (Sep. 2023 ) + 839.296 (Dec. 2023 ) = $3,032 Mil.
Teck Resources's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -418.037 (Mar. 2023 ) + -1110.191 (Jun. 2023 ) + -1018.402 (Sep. 2023 ) + -992.844 (Dec. 2023 ) = $-3,539 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.
Teck Resources (OTCPK:TCKRF) 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, Teck Resources has a Sloan Ratio of 5.46%, indicating the company is in the safe zone and there is no funny business with accruals.
Teck Resources Sloan Ratio % Related Terms
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Teck Resources (Teck Resources) Business Description
Teck is a diversified miner with coal, copper, and zinc operations in Canada, the United States, Chile, and Peru. Metallurgical coal is Teck's primary commodity in terms of EBITDA contribution, followed by copper and zinc. Teck is the world's second-largest exporter of seaborne metallurgical coal and is a top-three zinc miner. Its major new copper mine in Chile at the majority-owned Quebrada Blanca 2, in partnership with Sumitomo, will drive an increase in Teck's attributable copper production by roughly 80%. Along with a number of additional copper growth options, Teck's strategy is to rebalance its portfolio to low carbon metals such as copper. It sold its oil sands business in early 2023 and has agreed to sell its coal business, with the deal likely closing in the third quarter of 2024.
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