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.
Lassila & Tikanoja Oyj's Sloan Ratio for the quarter that ended in Dec. 2024 was -7.01%.
As of Dec. 2024, Lassila & Tikanoja Oyj has a Sloan Ratio of -7.01%, indicating the company is in the safe zone and there is no funny business with accruals.
Lassila & Tikanoja Oyj 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 Lassila & Tikanoja Oyj's Sloan Ratio %
For the Waste Management subindustry, Lassila & Tikanoja Oyj'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.
Lassila & Tikanoja Oyj's Sloan Ratio % Distribution in the Waste Management Industry
For the Waste Management industry and Industrials sector, Lassila & Tikanoja Oyj's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Lassila & Tikanoja Oyj's Sloan Ratio % falls into.
Lassila & Tikanoja Oyj 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.
Lassila & Tikanoja Oyj's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
Lassila & Tikanoja Oyj's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was -0.8 (Mar. 2024 ) + 7.1 (Jun. 2024 ) + 13.3 (Sep. 2024 ) + -21.3 (Dec. 2024 ) = €-1.7 Mil.
Lassila & Tikanoja Oyj's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was 1.9 (Mar. 2024 ) + 17.4 (Jun. 2024 ) + 24.8 (Sep. 2024 ) + 37.3 (Dec. 2024 ) = €81.4 Mil.
Lassila & Tikanoja Oyj's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -11.3 (Mar. 2024 ) + -11.8 (Jun. 2024 ) + -8.8 (Sep. 2024 ) + -8.6 (Dec. 2024 ) = €-40.5 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.
Lassila & Tikanoja Oyj (LTS:0F29) 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, Lassila & Tikanoja Oyj has a Sloan Ratio of -7.01%, indicating the company is in the safe zone and there is no funny business with accruals.
Lassila & Tikanoja Oyj Sloan Ratio % Related Terms
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Lassila & Tikanoja Oyj provides waste management and recycling operations, cleaning and repair services, construction, and other environment-related activities. It works to reduce waste, extend the useful lives of properties, recover materials, and reduce energy consumption. The company manages different forms of waste, including electrical equipment and paper. The waste is transformed into raw materials and fuel for power plants. Lassila & Tikanoja has four primary business divisions: Environmental services, Industrial services, Facility services finland, and Facility Services sweden. It generates the majority of its revenue from Environmental Services.
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