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.
Telstra Group's Sloan Ratio for the quarter that ended in Dec. 2023 was -2.11%.
As of Dec. 2023, Telstra Group has a Sloan Ratio of -2.11%, indicating the company is in the safe zone and there is no funny business with accruals.
Telstra Group Sloan Ratio % Historical Data
The historical data trend for Telstra Group'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 Telstra Group's Sloan Ratio %
For the Telecom Services subindustry, Telstra Group'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.
Telstra Group's Sloan Ratio % Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telstra Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Telstra Group's Sloan Ratio % falls into.
Telstra Group 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.
Telstra Group's Sloan Ratio for the fiscal year that ended in Jun. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Telstra Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 713.423 (Jun. 2023 ) + 645.248 (Dec. 2023 ) = $1,359 Mil.
Telstra Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 2641.611 (Jun. 2023 ) + 2030.12 (Dec. 2023 ) = $4,672 Mil.
Telstra Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -1197.987 (Jun. 2023 ) + -1470.549 (Dec. 2023 ) = $-2,669 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.
Telstra Group (OTCPK:TTRAF) 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, Telstra Group has a Sloan Ratio of -2.11%, indicating the company is in the safe zone and there is no funny business with accruals.
Telstra Group Sloan Ratio % Related Terms
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Telstra Group (Telstra Group) Business Description
Telstra is Australia's biggest telecommunications group, with material market shares in voice, mobile, data and internet, spanning retail, corporate and wholesale segments. Its fixed-line copper network will gradually be wound down as the government-owned National Broadband Network rolls out to all Australian households, but the group will be compensated accordingly. Investments into network applications and services, media, technology and overseas are being made to replace the expected lost fixed-line earnings longer term, while continuing cost-cuts are also critical.
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