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.
Evolution Mining's Sloan Ratio for the quarter that ended in Jun. 2024 was 7.32%.
As of Jun. 2024, Evolution Mining has a Sloan Ratio of 7.32%, indicating the company is in the safe zone and there is no funny business with accruals.
Evolution Mining Sloan Ratio % Historical Data
The historical data trend for Evolution Mining'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 Evolution Mining's Sloan Ratio %
For the Gold subindustry, Evolution Mining'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.
Evolution Mining's Sloan Ratio % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Evolution Mining's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Evolution Mining's Sloan Ratio % falls into.
Evolution Mining 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.
Evolution Mining's Sloan Ratio for the fiscal year that ended in Jun. 2024 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Evolution Mining's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was 59.457 (Dec. 2023 ) + 200.728 (Jun. 2024 ) = €260 Mil.
Evolution Mining's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was 261.877 (Dec. 2023 ) + 527.281 (Jun. 2024 ) = €789 Mil.
Evolution Mining's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was -553.344 (Dec. 2023 ) + -374.039 (Jun. 2024 ) = €-927 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.
Evolution Mining (FRA:WE7) 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 Jun. 2024, Evolution Mining has a Sloan Ratio of 7.32%, indicating the company is in the safe zone and there is no funny business with accruals.
Evolution Mining Sloan Ratio % Related Terms
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Evolution Mining is an Australian-based gold miner. It sold around 720,000 ounces of gold in fiscal 2024 from six wholly or majority owned mines in Australia and Canada. Formed in 2011 via the merger of Conquest Mining and Catalpa Resources and the purchase of Newcrest Mining's Mt Rawdon and Cracow mines, Evolution has acquired more mines and sold the generally less attractive, higher-cost mines. Cowal and Mungari were purchased in 2015, with an initial interest in Glencore's Ernest Henry mine following in 2016, Red Lake in Canada in 2020, the rest of Ernest Henry in 2022 and an 80% stake in the Northparkes copper and gold mine in December 2023. It had roughly 15 years of gold reserves at the end of December 2023.
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