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.
Zignago Vetro SpA's Sloan Ratio for the quarter that ended in Mar. 2024 was -0.47%.
As of Mar. 2024, Zignago Vetro SpA has a Sloan Ratio of -0.47%, indicating the company is in the safe zone and there is no funny business with accruals.
Zignago Vetro SpA Sloan Ratio % Historical Data
The historical data trend for Zignago Vetro SpA'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 Zignago Vetro SpA's Sloan Ratio %
For the Packaging & Containers subindustry, Zignago Vetro SpA'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.
Zignago Vetro SpA's Sloan Ratio % Distribution in the Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Zignago Vetro SpA's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Zignago Vetro SpA's Sloan Ratio % falls into.
Zignago Vetro SpA 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.
Zignago Vetro SpA's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Zignago Vetro SpA's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 44.981 (Jun. 2023 ) + 20.983 (Sep. 2023 ) + 26.773 (Dec. 2023 ) + 11.791 (Mar. 2024 ) = €104.5 Mil.
Zignago Vetro SpA's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 68.856 (Jun. 2023 ) + 40.729 (Sep. 2023 ) + 12.599 (Dec. 2023 ) + 36.068 (Mar. 2024 ) = €158.3 Mil.
Zignago Vetro SpA's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -15.769 (Jun. 2023 ) + -5.799 (Sep. 2023 ) + -14.562 (Dec. 2023 ) + -13.855 (Mar. 2024 ) = €-50.0 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.
Zignago Vetro SpA (FRA:ZVB) 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 Mar. 2024, Zignago Vetro SpA has a Sloan Ratio of -0.47%, indicating the company is in the safe zone and there is no funny business with accruals.
Zignago Vetro SpA Sloan Ratio % Related Terms
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Zignago Vetro SpA operates in the glass production sector. It manufactures hollow glass containers for Food and Beverages and Cosmetics and Perfumery sectors. The business of the group is carried in various geographical locations such as Italy, European Union, North America and other areas. The business activities of the group are divided into Zignago Vetro SpA: carries the production activity of containers for both sectors, Zignago Vetro Brosse SAS: looks into the production of glass containers for perfumes; Zignago Vetro Polska SA: which undertakes the production of customized products for cosmetic and perfumery containers and also for food and beverage niche markets.
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