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.
Spark New Zealand's Sloan Ratio for the quarter that ended in Jun. 2024 was 2.22%.
As of Jun. 2024, Spark New Zealand has a Sloan Ratio of 2.22%, indicating the company is in the safe zone and there is no funny business with accruals.
Spark New Zealand Sloan Ratio % Historical Data
The historical data trend for Spark New Zealand'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 Spark New Zealand's Sloan Ratio %
For the Telecom Services subindustry, Spark New Zealand'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.
Spark New Zealand's Sloan Ratio % Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Spark New Zealand's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Spark New Zealand's Sloan Ratio % falls into.
Spark New Zealand 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.
Spark New Zealand's Sloan Ratio for the fiscal year that ended in Jun. 2024 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Spark New Zealand's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was 145.96 (Dec. 2023 ) + 146.994 (Jun. 2024 ) = A$293 Mil.
Spark New Zealand's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was 285.413 (Dec. 2023 ) + 422.494 (Jun. 2024 ) = A$708 Mil.
Spark New Zealand's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was -307.725 (Dec. 2023 ) + -202.464 (Jun. 2024 ) = A$-510 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.
Spark New Zealand (ASX:SPK) 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. 2024, Spark New Zealand has a Sloan Ratio of 2.22%, indicating the company is in the safe zone and there is no funny business with accruals.
Spark New Zealand Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Spark New Zealand's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Spark is one of only three integrated telecommunications operators in New Zealand. It is the leading mobile network operator with low- to mid-40% subscriber and revenue share, and the dominant provider of fixed-line broadband services with a mid-30% subscriber share. It has a commanding presence in the New Zealand corporate and wholesale telecommunications services provision space. Spark supplements its core telecommunications operations and related infrastructure with IT products and services across cloud, managed data and networks, procurement, data centers, and Internet of Things. Its operations are entirely based in New Zealand, except for its 41% interest in Southern Cross Submarine Cables, which has zero book value and to which Spark has no funding obligations.
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