What is Philip Morris International Sloan Ratio %?
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.
As of Dec. 2023, Philip Morris International has a Sloan Ratio of 3.38%, indicating the company is in the safe zone and there is no funny business with accruals.
Philip Morris International Sloan Ratio % Historical Data
* 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 Philip Morris International's Sloan Ratio %
For the Tobacco subindustry, Philip Morris International'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.
Philip Morris International's Sloan Ratio % Distribution in the Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Philip Morris International's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Philip Morris International's Sloan Ratio % falls into.
Philip Morris International 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.
Philip Morris International's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 1995 (Mar. 2023 ) + 1568 (Jun. 2023 ) + 2054 (Sep. 2023 ) + 2196 (Dec. 2023 ) = $7,813 Mil.
Philip Morris International's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -955 (Mar. 2023 ) + 3442 (Jun. 2023 ) + 3415 (Sep. 2023 ) + 3302 (Dec. 2023 ) = $9,204 Mil.
Philip Morris International's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -591 (Mar. 2023 ) + -483 (Jun. 2023 ) + -1956 (Sep. 2023 ) + -568 (Dec. 2023 ) = $-3,598 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.
Philip Morris International (NYSE:PM) 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, Philip Morris International has a Sloan Ratio of 3.38%, indicating the company is in the safe zone and there is no funny business with accruals.
Philip Morris International Sloan Ratio % Related Terms
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Philip Morris International (Philip Morris International) Business Description
Philip Morris International is an international tobacco company with a product portfolio primarily consisting of cigarettes and reduced-risk products, including heat-not-burn, vapor and oral nicotine products, which are sold in markets outside the United States. The company diversified away from cigarettes with the 2022 acquisition of Swedish Match, a leading manufacturer of traditional oral tobacco products and nicotine pouches, primarily in the U.S. and Scandinavia. It diversified away from nicotine products with the acquisition of Vectura, a provider of innovative inhaled drug delivery solutions, in 2021.
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