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AFC Energy (FRA:QC8) Sloan Ratio % : 2.26% (As of Apr. 2024)


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What is AFC Energy Sloan Ratio %?

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.

AFC Energy's Sloan Ratio for the quarter that ended in Apr. 2024 was 2.26%.

As of Apr. 2024, AFC Energy has a Sloan Ratio of 2.26%, indicating the company is in the safe zone and there is no funny business with accruals.


AFC Energy Sloan Ratio % Historical Data

The historical data trend for AFC Energy'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.

* Premium members only.

AFC Energy Sloan Ratio % Chart

AFC Energy Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.27 -0.48 2.07 -2.16 -8.54

AFC Energy Semi-Annual Data
Oct14 Apr15 Oct15 Apr16 Oct16 Apr17 Oct17 Apr18 Oct18 Apr19 Oct19 Apr20 Oct20 Apr21 Oct21 Apr22 Oct22 Apr23 Oct23 Apr24
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.03 -2.25 6.39 -8.66 2.26

Competitive Comparison of AFC Energy's Sloan Ratio %

For the Electrical Equipment & Parts subindustry, AFC Energy'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.


AFC Energy's Sloan Ratio % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, AFC Energy's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where AFC Energy's Sloan Ratio % falls into.



AFC Energy 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.

AFC Energy's Sloan Ratio for the fiscal year that ended in Oct. 2023 is calculated as

Sloan Ratio=(Net Income (A: Oct. 2023 )-Cash Flow from Operations (A: Oct. 2023 )
-Cash Flow from Investing (A: Oct. 2023 ))/Total Assets (A: Oct. 2023 )
=(-20.157--15.155
--1.433)/41.799
=-8.54%

AFC Energy's Sloan Ratio for the quarter that ended in Apr. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Apr. 2024 )
=(-22.648--18.81
--4.581)/32.808
=2.26%

For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data. AFC Energy's Net Income for the trailing twelve months (TTM) ended in Apr. 2024 was -12.945 (Oct. 2023 ) + -9.703 (Apr. 2024 ) = €-22.65 Mil.
AFC Energy's Cash Flow from Operations for the trailing twelve months (TTM) ended in Apr. 2024 was -5.833 (Oct. 2023 ) + -12.977 (Apr. 2024 ) = €-18.81 Mil.
AFC Energy's Cash Flow from Investing for the trailing twelve months (TTM) ended in Apr. 2024 was -0.174 (Oct. 2023 ) + -4.407 (Apr. 2024 ) = €-4.58 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.


AFC Energy  (FRA:QC8) 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 Apr. 2024, AFC Energy has a Sloan Ratio of 2.26%, indicating the company is in the safe zone and there is no funny business with accruals.


AFC Energy Sloan Ratio % Related Terms

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AFC Energy Business Description

Traded in Other Exchanges
Address
Unit 71.4 Dunsfold Park, Stovolds Hill, Cranleigh, Surrey, GBR, GU6 8TB
AFC Energy PLC is a provider of hydrogen fuel cell power systems to generate clean energy in support of the energy transition. The company's scalable systems provide off-grid, zero-emission power that is already being deployed for rapid electric vehicle charging and the replacement of diesel generators for temporary power applications. it is also working with its partners in the deployment of products for the Maritime, Ports, Data Centers, and Rail industries, emphasizing the central role of its technology in the decarbonization of industry.

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