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.
Elisa Oyj's Sloan Ratio for the quarter that ended in Dec. 2024 was 3.05%.
As of Dec. 2024, Elisa Oyj has a Sloan Ratio of 3.05%, indicating the company is in the safe zone and there is no funny business with accruals.
Elisa Oyj Sloan Ratio % Historical Data
The historical data trend for Elisa Oyj'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 Elisa Oyj's Sloan Ratio %
For the Telecom Services subindustry, Elisa Oyj'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.
Elisa Oyj's Sloan Ratio % Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Elisa Oyj's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Elisa Oyj'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.
Elisa Oyj's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
Elisa Oyj's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was 82.9 (Mar. 2024 ) + 91.9 (Jun. 2024 ) + 100.9 (Sep. 2024 ) + 82.6 (Dec. 2024 ) = €358 Mil.
Elisa Oyj's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was 143.8 (Mar. 2024 ) + 173.9 (Jun. 2024 ) + 188.9 (Sep. 2024 ) + 144.3 (Dec. 2024 ) = €651 Mil.
Elisa Oyj's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -82.2 (Mar. 2024 ) + -97.9 (Jun. 2024 ) + -93.6 (Sep. 2024 ) + -121.2 (Dec. 2024 ) = €-395 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.
Elisa Oyj (FRA:EIA) 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, Elisa Oyj has a Sloan Ratio of 3.05%, indicating the company is in the safe zone and there is no funny business with accruals.
Elisa Oyj Sloan Ratio % Related Terms
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Elisa Oyj is a telecommunications company that operates in two segments, Consumer Customers and Corporate Customers. The Consumer Customers segment provides consumers with telecommunications and communications services, such as fixed and mobile subscriptions with supplementary digital services, cable TV subscriptions, and Elisa Viihde entertainment service. The Corporate Customers segment provides corporate and public administration organizations with services such as IT and communication solutions for the digital environment and fixed and mobile subscriptions. The majority of revenue is generated from the Consumer Customers segment. The company generates the majority of its revenue in Finland.
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