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 Mar. 2024, B3 - Brasil Bolsa Balcao has a Sloan Ratio of 1.76%, indicating the company is in the safe zone and there is no funny business with accruals.
B3 - Brasil Bolsa Balcao 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 B3 - Brasil Bolsa Balcao's Sloan Ratio %
For the Financial Data & Stock Exchanges subindustry, B3 - Brasil Bolsa Balcao'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.
B3 - Brasil Bolsa Balcao's Sloan Ratio % Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, B3 - Brasil Bolsa Balcao's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where B3 - Brasil Bolsa Balcao's Sloan Ratio % falls into.
B3 - Brasil Bolsa Balcao 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.
B3 - Brasil Bolsa Balcao's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
B3 - Brasil Bolsa Balcao's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 216.905 (Jun. 2023 ) + 217.515 (Sep. 2023 ) + 186.853 (Dec. 2023 ) + 190.687 (Mar. 2024 ) = $812 Mil.
B3 - Brasil Bolsa Balcao's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 435.391 (Jun. 2023 ) + 264.161 (Sep. 2023 ) + -207.723 (Dec. 2023 ) + 307.806 (Mar. 2024 ) = $800 Mil.
B3 - Brasil Bolsa Balcao's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -129.436 (Jun. 2023 ) + -6.92 (Sep. 2023 ) + -16.944 (Dec. 2023 ) + -5.155 (Mar. 2024 ) = $-158 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.
B3 - Brasil Bolsa Balcao (OTCPK:BOLSY) 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 Mar. 2024, B3 - Brasil Bolsa Balcao has a Sloan Ratio of 1.76%, indicating the company is in the safe zone and there is no funny business with accruals.
B3 - Brasil Bolsa Balcao Sloan Ratio % Related Terms
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B3 - Brasil Bolsa Balcao (B3 - Brasil Bolsa Balcao) Business Description
B3 SA - Brasil Bolsa Balcao is a financial market exchange. Its services consist of trading, clearing, and other post-trade services. The company's activities are carried out through its trading systems and clearinghouses and include transactions with securities, interbank foreign exchange, and securities under custody in the special system for settlement and custody. It relies on technology to deliver its services.
B3 - Brasil Bolsa Balcao (B3 - Brasil Bolsa Balcao) Headlines
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