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.
Alupar Investimento's Sloan Ratio for the quarter that ended in Dec. 2023 was -5.22%.
As of Dec. 2023, Alupar Investimento has a Sloan Ratio of -5.22%, indicating the company is in the safe zone and there is no funny business with accruals.
Alupar Investimento Sloan Ratio % Historical Data
The historical data trend for Alupar Investimento'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 Alupar Investimento's Sloan Ratio %
For the Utilities - Renewable subindustry, Alupar Investimento'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.
Alupar Investimento's Sloan Ratio % Distribution in the Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Alupar Investimento's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Alupar Investimento's Sloan Ratio % falls into.
Alupar Investimento 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.
Alupar Investimento's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Alupar Investimento's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 230.71 (Mar. 2023 ) + 222.186 (Jun. 2023 ) + 100.005 (Sep. 2023 ) + 141.162 (Dec. 2023 ) = R$694 Mil.
Alupar Investimento's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 488.751 (Mar. 2023 ) + 635.232 (Jun. 2023 ) + 641.085 (Sep. 2023 ) + 611.644 (Dec. 2023 ) = R$2,377 Mil.
Alupar Investimento's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 18.51 (Mar. 2023 ) + 97.117 (Jun. 2023 ) + -29.466 (Sep. 2023 ) + -283.534 (Dec. 2023 ) = R$-197 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.
Alupar Investimento (BSP:ALUP4) 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, Alupar Investimento has a Sloan Ratio of -5.22%, indicating the company is in the safe zone and there is no funny business with accruals.
Alupar Investimento Sloan Ratio % Related Terms
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Alupar Investimento (BSP:ALUP4) Business Description
Alupar Investimento SA is a Brazilian company dedicated to power generation and transmission and focuses on the development and investment in infrastructure projects related to the energy sectors. The transmission segment of the company has several electric power transmission concessions. The generation segment of the company invests in activities of small and medium generation plants including hydropower plants, solar power plants, and wind farms in Brazil, Columbia, and Peru. Sources of revenue include energy transmission revenue, infrastructure revenue, revenue from the remuneration of concession assets, and revenue from energy supply. The majority of revenue comes from the remuneration of concession assets. Alupar generates the vast majority of its revenue in Brazil.
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