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.
Orsted AS's Sloan Ratio for the quarter that ended in Dec. 2024 was 1.45%.
As of Dec. 2024, Orsted AS has a Sloan Ratio of 1.45%, indicating the company is in the safe zone and there is no funny business with accruals.
Orsted AS Sloan Ratio % Historical Data
The historical data trend for Orsted AS'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 Orsted AS's Sloan Ratio %
For the Utilities - Renewable subindustry, Orsted AS'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.
Orsted AS's Sloan Ratio % Distribution in the Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Orsted AS's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Orsted AS's Sloan Ratio % falls into.
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.
Orsted AS's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
Orsted AS's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was 373.043 (Mar. 2024 ) + -247.635 (Jun. 2024 ) + 761.238 (Sep. 2024 ) + -865.194 (Dec. 2024 ) = $21 Mil.
Orsted AS's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was 525.963 (Mar. 2024 ) + 877.034 (Jun. 2024 ) + -243.971 (Sep. 2024 ) + 1447.045 (Dec. 2024 ) = $2,606 Mil.
Orsted AS's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -1175.107 (Mar. 2024 ) + -1264.134 (Jun. 2024 ) + -1043.912 (Sep. 2024 ) + 292.049 (Dec. 2024 ) = $-3,191 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.
Orsted AS (OTCPK:DOGEF) 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. 2024, Orsted AS has a Sloan Ratio of 1.45%, indicating the company is in the safe zone and there is no funny business with accruals.
Orsted AS Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Orsted AS's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Danish company Orsted was named Dong Energy until the sale of all its oil and gas fields to Ineos in 2017, soon after the May 2016 initial public offering. Orsted is now focused on renewable assets, especially offshore wind farms. It operated 9.9 gigawatts of offshore wind farms at the end of 2024. The United Kingdom is the biggest country of operation, ahead of Germany and Denmark. The group intends to develop its footprint outside Europe with projects in Taiwan and in the US. Orsted also operates 4.8 GW of onshore wind and solar assets concentrated in the United States. The company is involved in more traditional utilities business like conventional power plants and gas supply, but these activities are noncore.
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