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.
Northam Platinum's Sloan Ratio for the quarter that ended in Jun. 2021 was 1.30%.
As of Jun. 2021, Northam Platinum has a Sloan Ratio of 1.30%, indicating the company is in the safe zone and there is no funny business with accruals.
Northam Platinum Sloan Ratio % Historical Data
The historical data trend for Northam Platinum'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 Northam Platinum's Sloan Ratio %
For the Other Precious Metals & Mining subindustry, Northam Platinum'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.
Northam Platinum's Sloan Ratio % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Northam Platinum's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Northam Platinum's Sloan Ratio % falls into.
Northam Platinum 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.
Northam Platinum's Sloan Ratio for the fiscal year that ended in Jun. 2021 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Northam Platinum's Net Income for the trailing twelve months (TTM) ended in Jun. 2021 was 141.047 (Dec. 2020 ) + 523.53 (Jun. 2021 ) = $664.58 Mil.
Northam Platinum's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2021 was 211.304 (Dec. 2020 ) + 643.372 (Jun. 2021 ) = $854.68 Mil.
Northam Platinum's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2021 was -86.97 (Dec. 2020 ) + -138.542 (Jun. 2021 ) = $-225.51 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.
Northam Platinum (OTCPK:NMPNY) 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 Jun. 2021, Northam Platinum has a Sloan Ratio of 1.30%, indicating the company is in the safe zone and there is no funny business with accruals.
Northam Platinum Sloan Ratio % Related Terms
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Northam Platinum (Northam Platinum) Business Description
Northam Platinum Ltd is a producer of platinum group metals, which include platinum, palladium, and rhodium. Northam conducts operations across two main locations in South Africa, Zondereinde and Booysendal, where the mining, concentrating, smelting, and base metals recovery processes occur. The company then outsources its production for refining. The primary consumers of platinum, palladium, and rhodium are from the motor-manufacturing and jewellery industries. Northam sells metals in sponge or ingot form domestically and to overseas markets across Asia, Europe, and North America.
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