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African Minerals (LSE:AMI) Sloan Ratio % : -0.21% (As of Jun. 2014)


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What is African Minerals 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.

African Minerals's Sloan Ratio for the quarter that ended in Jun. 2014 was -0.21%.

As of Jun. 2014, African Minerals has a Sloan Ratio of -0.21%, indicating the company is in the safe zone and there is no funny business with accruals.


African Minerals Sloan Ratio % Historical Data

The historical data trend for African Minerals'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.

African Minerals Sloan Ratio % Chart

African Minerals Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.30 33.33 53.90 12.65 8.54

African Minerals Semi-Annual Data
Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only - 12.32 27.14 8.96 -0.21

Competitive Comparison of African Minerals's Sloan Ratio %

For the Other Industrial Metals & Mining subindustry, African Minerals'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.


African Minerals's Sloan Ratio % Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, African Minerals's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where African Minerals's Sloan Ratio % falls into.



African Minerals 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.

African Minerals's Sloan Ratio for the fiscal year that ended in Dec. 2013 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2013 )-Cash Flow from Operations (A: Dec. 2013 )
-Cash Flow from Investing (A: Dec. 2013 ))/Total Assets (A: Dec. 2013 )
=(-55.327--120.902
--102.846)/1973.167
=8.54%

African Minerals's Sloan Ratio for the quarter that ended in Jun. 2014 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Jun. 2014 )
=(-31.218-36.988
--64.288)/1863.187
=-0.21%

For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data. African Minerals's Net Income for the trailing twelve months (TTM) ended in Jun. 2014 was -36.478 (Dec. 2013 ) + 5.26 (Jun. 2014 ) = £-31.2 Mil.
African Minerals's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2014 was -24.949 (Dec. 2013 ) + 61.937 (Jun. 2014 ) = £37.0 Mil.
African Minerals's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2014 was -35.624 (Dec. 2013 ) + -28.664 (Jun. 2014 ) = £-64.3 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.


African Minerals  (LSE:AMI) 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 Jun. 2014, African Minerals has a Sloan Ratio of -0.21%, indicating the company is in the safe zone and there is no funny business with accruals.


African Minerals Sloan Ratio % Related Terms

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African Minerals (LSE:AMI) Business Description

Traded in Other Exchanges
N/A
Address
Stratton House, 5 Stratton Street, London, GBR, W1J 8LA
African Minerals Ltd is a mineral exploration and development company. It is engaged in the development, design, construction, and operation of iron ore deposit at Tonkolili, Sierra Leone, and its related rail and port infrastructure. In addition, it is also involved in the marketing and sale of the iron ore produced from this project.

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