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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.
FMC's Sloan Ratio for the quarter that ended in Dec. 2024 was -5.09%.
As of Dec. 2024, FMC has a Sloan Ratio of -5.09%, indicating the company is in the safe zone and there is no funny business with accruals.
The historical data trend for FMC'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.
FMC Annual Data | |||||||||||||||||||||
Trend | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | Dec24 | |||||||||||
Sloan Ratio % | Get a 7-Day Free Trial |
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0.73 | 0.30 | 3.76 | 15.62 | -5.09 |
FMC Quarterly Data | ||||||||||||||||||||
Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | Sep24 | Dec24 | |
Sloan Ratio % | Get a 7-Day Free Trial |
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15.62 | 7.79 | 8.34 | 7.98 | -5.09 |
For the Agricultural Inputs subindustry, FMC'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.
For the Agriculture industry and Basic Materials sector, FMC's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where FMC'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.
FMC's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
Sloan Ratio | = | (Net Income (A: Dec. 2024 ) | - | Cash Flow from Operations (A: Dec. 2024 ) |
- | Cash Flow from Investing (A: Dec. 2024 )) | / | Total Assets (A: Dec. 2024 ) | |
= | (341.1 | - | 671.1 | |
- | 263.6) | / | 11653.3 | |
= | -5.09% |
FMC's Sloan Ratio for the quarter that ended in Dec. 2024 is calculated as
Sloan Ratio | = | (Net Income (TTM) | - | Cash Flow from Operations (TTM)) |
- | Cash Flow from Investing (TTM)) | / | Total Assets (Q: Dec. 2024 ) | |
= | (341.1 | - | 671.1 | |
- | 263.6) | / | 11653.3 | |
= | -5.09% |
FMC's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was -2.7 (Mar. 2024 ) + 295.1 (Jun. 2024 ) + 65 (Sep. 2024 ) + -16.3 (Dec. 2024 ) = $341 Mil. FMC's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was -164.4 (Mar. 2024 ) + 294.8 (Jun. 2024 ) + 141.2 (Sep. 2024 ) + 399.5 (Dec. 2024 ) = $671 Mil. FMC's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -23.7 (Mar. 2024 ) + -15.9 (Jun. 2024 ) + -16.3 (Sep. 2024 ) + 319.5 (Dec. 2024 ) = $264 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.
FMC (NYSE:FMC) 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. 2024, FMC has a Sloan Ratio of -5.09%, indicating the company is in the safe zone and there is no funny business with accruals.
Thank you for viewing the detailed overview of FMC's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Carol Anthony Davidson | director | |
Ronaldo Pereira | officer: EVP, President, FMC Americas | 1620 MONK RD, GLADWYNE PA 19035 |
Pierre R Brondeau | officer: CEO, President, Chairman of Bd | ROHAM AND HAAS CO, 100 INDEPENDENCE MALL WEST, PHILADELPHIA PA 19106 |
Michael Finian Reilly | officer: EVP, General Counsel & Sec. | FMC CORPORATION, 2929 WALNUT STREET, PHILADELPHIA PA 19104 |
Jacqueline Scanlan | officer: Executive VP & Chief HRO | HAEMONETICS CORPORATION, 400 WOOD ROAD, BRAINTREE MA 02184 |
Andrew D Sandifer | officer: EVP and CFO | FMC CORPORATION, 2929 WALNUT STREET, PHILADELPHIA PA 19104 |
Robert C Pallash | director | 17000 ROTUNDA DRIVE, DEARBORN MI 48120 |
Nicholas Pfeiffer | officer: Corporate Controller | 1735 MARKET STREET, PHILADELPHIA PA 19103 |
Patricia Verduin | director | ONE CONAGRA DRIVE, OMAHA NE 68102 |
Mark Douglas | officer: Pres., Agricultural Solutions | ROHM AND HAAS COMPANY, 100 INDEPENDENCE MALL WEST, PHILADELPHIA PA 19106 |
Vsevolod Rostovtsev | officer: VP & Chief Technology Officer | 909 TWYCKENHAM ROAD, MEDIA PA 19063 |
Kathy Lynn Fortmann | director | INTERNATIONAL FLAVORS & FRAGRANCES INC., 521 WEST 57TH STREET, NEW YORK NY 10019 |
Kathleen Shelton | officer: EVP, Chief Technology Officer | 630 UNIVERSITY PLACE, SWARTHMORE PA 19081 |
Diane Allemang | officer: EVP & Chief Marketing Officer | 1615 NORTH CLEVELAND STREET, ARLINGTON VA 22201 |
Eduardo E Cordeiro | director | C/O CABOT CORPORATION, TWO SEAPORT LANE, SUITE 1300, BOSTON MA 02210 |
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