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 Mar. 2024, CTT-Correios de Portugal has a Sloan Ratio of 4.15%, indicating the company is in the safe zone and there is no funny business with accruals.
CTT-Correios de Portugal 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 CTT-Correios de Portugal's Sloan Ratio %
For the Integrated Freight & Logistics subindustry, CTT-Correios de Portugal'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.
CTT-Correios de Portugal's Sloan Ratio % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, CTT-Correios de Portugal's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where CTT-Correios de Portugal's Sloan Ratio % falls into.
CTT-Correios de Portugal 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.
CTT-Correios de Portugal's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
CTT-Correios de Portugal's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 9.914 (Jun. 2023 ) + 9.479 (Sep. 2023 ) + 24.984 (Dec. 2023 ) + 7.433 (Mar. 2024 ) = €51.8 Mil.
CTT-Correios de Portugal's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -61.106 (Jun. 2023 ) + 309.929 (Sep. 2023 ) + 667.298 (Dec. 2023 ) + 292.361 (Mar. 2024 ) = €1,208.5 Mil.
CTT-Correios de Portugal's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -122.146 (Jun. 2023 ) + -345.64 (Sep. 2023 ) + -606.346 (Dec. 2023 ) + -293.799 (Mar. 2024 ) = €-1,367.9 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.
CTT-Correios de Portugal (LTS:0QIM) 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, CTT-Correios de Portugal has a Sloan Ratio of 4.15%, indicating the company is in the safe zone and there is no funny business with accruals.
CTT-Correios de Portugal Sloan Ratio % Related Terms
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CTT-Correios de Portugal (LTS:0QIM) Business Description
CTT-Correios de Portugal SA is a logistics company domiciled in Portugal. The company organizes itself into four segments: mail, express and parcels, financial services, and bank. The mail segment, which generates a vast majority of the company's revenue, provides mail postal services to business customers, distribution of advertising materials, and postal communication solutions, among others. Express and parcels, the next largest segment, provides parcel postal and courier services. The company provides financial services such as payment processing and retail banking through both the financial services segment and the bank segment. The company earns most of its revenue domestically.
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