Penrice Soda Holdings (ASX:PSH) Sloan Ratio % : -19.68% (As of Dec. 2013)

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What is Penrice Soda Holdings 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.

Penrice Soda Holdings's Sloan Ratio for the quarter that ended in Dec. 2013 was -19.68%.

As of Dec. 2013, Penrice Soda Holdings has a Sloan Ratio of -19.68%, indicating earnings are more likely to be made up of accruals.

Penrice Soda Holdings Sloan Ratio % Historical Data

The historical data trend for Penrice Soda Holdings'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.

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Penrice Soda Holdings Sloan Ratio % Chart

Penrice Soda Holdings Annual Data

Trend

Jun05

Jun06

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Sloan Ratio %

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14.75

5.76

-9.21

-33.54

-37.25

Penrice Soda Holdings Semi-Annual Data
	Dec05	Jun06	Dec06	Jun07	Dec07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13
Sloan Ratio %	Get a 7-Day Free Trial												-20.81	-33.54	-48.04	-37.25	-19.68

Competitive Comparison of Penrice Soda Holdings's Sloan Ratio %

For the Chemicals subindustry, Penrice Soda Holdings'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.

Penrice Soda Holdings's Sloan Ratio % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Penrice Soda Holdings's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Penrice Soda Holdings's Sloan Ratio % falls into.

Penrice Soda Holdings 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.

Penrice Soda Holdings's Sloan Ratio for the fiscal year that ended in Jun. 2013 is calculated as

Sloan Ratio	=	(Net Income (A: Jun. 2013 )	-	Cash Flow from Operations (A: Jun. 2013 )
	-	Cash Flow from Investing (A: Jun. 2013 ))	/	Total Assets (A: Jun. 2013 )
	=	(-50.092	-	-3.016
	-	-3.256)	/	117.648
	=	-37.25%

Penrice Soda Holdings's Sloan Ratio for the quarter that ended in Dec. 2013 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Dec. 2013 )
	=	(-34.237	-	-6.632
	-	-5.952)	/	110.019
	=	-19.68%

For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data. Penrice Soda Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2013 was -21.964 (Jun. 2013 ) + -12.273 (Dec. 2013 ) = A$-34.2 Mil.
Penrice Soda Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2013 was -2.598 (Jun. 2013 ) + -4.034 (Dec. 2013 ) = A$-6.6 Mil.
Penrice Soda Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2013 was -2.312 (Jun. 2013 ) + -3.64 (Dec. 2013 ) = A$-6.0 Mil.

Penrice Soda Holdings (ASX:PSH) 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.

According to How to Beat the Market with the Sloan Ratio:

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. 2013, Penrice Soda Holdings has a Sloan Ratio of -19.68%, indicating earnings are more likely to be made up of accruals.

Penrice Soda Holdings Sloan Ratio % Related Terms

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Penrice Soda Holdings (ASX:PSH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Penrice Soda Holdings Ltd (ASX:PSH) » Definitions » Sloan Ratio %

Traded in Other Exchanges

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Address

Website

http://www.penrice.com.au

Penrice Soda Holdings Limited (PSH) is a manufacturer of soda ash and sodium bicarbonate in Australia. Penrice operates the soda ash and sodium bicarbonate plant located at Osborne, close to Adelaide and also operates the marble and limestone mine in SA at Angaston in the Barossa Valley.