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.
Betolar Oyj's Sloan Ratio for the quarter that ended in Dec. 2023 was -50.41%.
Warning Sign:
When sloan ratio (-50.41)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2023, Betolar Oyj has a Sloan Ratio of -50.41%, indicating earnings are more likely to be made up of accruals.
Betolar Oyj Sloan Ratio % Historical Data
The historical data trend for Betolar Oyj'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 Betolar Oyj's Sloan Ratio %
For the Building Materials subindustry, Betolar 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.
Betolar Oyj's Sloan Ratio % Distribution in the Building Materials Industry
For the Building Materials industry and Basic Materials sector, Betolar Oyj's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Betolar Oyj's Sloan Ratio % falls into.
Betolar 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.
Betolar Oyj's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Betolar Oyj's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -7.031 (Jun. 2023 ) + -6.122 (Dec. 2023 ) = €-13.15 Mil.
Betolar Oyj's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -6.423 (Jun. 2023 ) + -5.253 (Dec. 2023 ) = €-11.68 Mil.
Betolar Oyj's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 6.959 (Jun. 2023 ) + 2.269 (Dec. 2023 ) = €9.23 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.
Betolar Oyj (OHEL:BETOLAR) 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. 2023, Betolar Oyj has a Sloan Ratio of -50.41%, indicating earnings are more likely to be made up of accruals.
Betolar Oyj Sloan Ratio % Related Terms
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Betolar Oyj is a Finnish materials technology company in the growth stage, whose mission is to enable the green transition of different industries globally, especially in the construction, process, and energy industries, by offering solutions for the utilization of its material technology. With its Geoprime solution, the company offers an alternative for producing sustainable and low-carbon concrete and concrete applications. The solution can be used to convert previously under-used or unused industrial side streams into a substitute for cement used in the production of concrete. Its product offering is divided into four segments: precast small concrete products, building elements, mining, and recycling of untapped side streams.
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