What is Graphic Packaging Holding Co 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.
As of Dec. 2024, Graphic Packaging Holding Co has a Sloan Ratio of 1.44%, indicating the company is in the safe zone and there is no funny business with accruals.
Graphic Packaging Holding Co Sloan Ratio % Historical Data
* 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 Graphic Packaging Holding Co's Sloan Ratio %
For the Packaging & Containers subindustry, Graphic Packaging Holding Co'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.
Graphic Packaging Holding Co's Sloan Ratio % Distribution in the Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Graphic Packaging Holding Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Graphic Packaging Holding Co's Sloan Ratio % falls into.
Graphic Packaging Holding Co 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.
Graphic Packaging Holding Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was 165 (Mar. 2024 ) + 190 (Jun. 2024 ) + 165 (Sep. 2024 ) + 138 (Dec. 2024 ) = $658 Mil.
Graphic Packaging Holding Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was 3 (Mar. 2024 ) + 161 (Jun. 2024 ) + 187 (Sep. 2024 ) + 489 (Dec. 2024 ) = $840 Mil.
Graphic Packaging Holding Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -311 (Mar. 2024 ) + 486 (Jun. 2024 ) + -277 (Sep. 2024 ) + -240 (Dec. 2024 ) = $-342 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.
Graphic Packaging Holding Co (NYSE:GPK) 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, Graphic Packaging Holding Co has a Sloan Ratio of 1.44%, indicating the company is in the safe zone and there is no funny business with accruals.
Graphic Packaging Holding Co Sloan Ratio % Related Terms
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Graphic Packaging Holding Co is a holding company that manufactures and sells a variety of paper-based consumer packaging products through its subsidiaries. The company's reportable segments are; Paperboard Manufacturing, Americas Paperboard Packaging, and Europe Paperboard Packaging. The majority of the revenue is generated from its Americas Paperboard Packaging segment which includes paperboard packaging sold predominantly to consumer packaged goods (CPG) companies and cups, lids and food containers sold to foodservice companies and quick-service restaurants (QSR) serving the food, beverage, and consumer product markets in the Americas. Geographically, the company generates revenue from the Americas, Europe and Asia Pacific regions.
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