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 Jun. 2024, Eimskipafelag Islands ehf has a Sloan Ratio of 0.78%, indicating the company is in the safe zone and there is no funny business with accruals.
Eimskipafelag Islands ehf 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 Eimskipafelag Islands ehf's Sloan Ratio %
For the Integrated Freight & Logistics subindustry, Eimskipafelag Islands ehf'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.
Eimskipafelag Islands ehf's Sloan Ratio % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Eimskipafelag Islands ehf's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Eimskipafelag Islands ehf's Sloan Ratio % falls into.
Eimskipafelag Islands ehf 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.
Eimskipafelag Islands ehf's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Eimskipafelag Islands ehf's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was 2413.714 (Sep. 2023 ) + 1263.046 (Dec. 2023 ) + 66.797 (Mar. 2024 ) + 1129.539 (Jun. 2024 ) = kr4,873 Mil.
Eimskipafelag Islands ehf's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was 4265.227 (Sep. 2023 ) + 1796.498 (Dec. 2023 ) + 750.025 (Mar. 2024 ) + 3129.149 (Jun. 2024 ) = kr9,941 Mil.
Eimskipafelag Islands ehf's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was -2430.147 (Sep. 2023 ) + -1329.616 (Dec. 2023 ) + -1107.56 (Mar. 2024 ) + -940.622 (Jun. 2024 ) = kr-5,808 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.
Eimskipafelag Islands ehf (OISE:EIM) 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. 2024, Eimskipafelag Islands ehf has a Sloan Ratio of 0.78%, indicating the company is in the safe zone and there is no funny business with accruals.
Eimskipafelag Islands ehf Sloan Ratio % Related Terms
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Eimskipafelag Islands ehf Formerly Eimpskipafelag Islands provides shipping, logistics, supply chain services. The company's operations are divided into two market segments namely Liner services and Forwarding services. The liner services segment includes operations such as port operations, cold storage facilities, warehousing, trucking and distribution, air freight and agency services in Iceland and Norway. The forwarding services segment includes reefer forwarding, a system based on a network of own offices, association with deep-sea lines and associates. The company earns the majority of its revenues from Iceland, the Faroe Islands, and Asia.
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