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.
Investor AB's Sloan Ratio for the quarter that ended in Mar. 2024 was 14.92%.
As of Mar. 2024, Investor AB has a Sloan Ratio of 14.92%, indicating there is a warning stage of accrual build up.
Investor AB Sloan Ratio % Historical Data
The historical data trend for Investor AB'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 Investor AB's Sloan Ratio %
For the Asset Management subindustry, Investor AB'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.
Investor AB's Sloan Ratio % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Investor AB's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Investor AB's Sloan Ratio % falls into.
Investor AB 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.
Investor AB's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Investor AB's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 45343 (Jun. 2023 ) + -11090 (Sep. 2023 ) + 59944 (Dec. 2023 ) + 67034 (Mar. 2024 ) = kr161,231 Mil.
Investor AB's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 7215 (Jun. 2023 ) + 2593 (Sep. 2023 ) + 6473 (Dec. 2023 ) + 7591 (Mar. 2024 ) = kr23,872 Mil.
Investor AB's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -680 (Jun. 2023 ) + -602 (Sep. 2023 ) + -213 (Dec. 2023 ) + 3508 (Mar. 2024 ) = kr2,013 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.
Investor AB (LTS:0NC6) 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, Investor AB has a Sloan Ratio of 14.92%, indicating there is a warning stage of accrual build up.
Investor AB Sloan Ratio % Related Terms
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Investor AB is an industrial holding company with a long-term, active investment portfolio strategy. The company focuses on investing in companies that emphasize innovation and product development. Investor AB's so-called "buy-to-build" strategy seeks not to divest holdings, but rather to develop them over time in order to close the gap between price and value. A majority of its equity investments are made in the country of Sweden and greater Scandinavia, where the company mostly operates. The company measures performance by changes in net asset value and seeks to outperform the Stockholm Stock Exchange's OMSX Index. In 2015, Investor AB also formed and currently operates Patricia Industries, a sizable component of the company that was formed to manage its unlisted investments.
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