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.
OMV AG's Sloan Ratio for the quarter that ended in Sep. 2024 was -0.70%.
As of Sep. 2024, OMV AG has a Sloan Ratio of -0.70%, indicating the company is in the safe zone and there is no funny business with accruals.
OMV AG Sloan Ratio % Historical Data
The historical data trend for OMV AG'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.
For the Oil & Gas Integrated subindustry, OMV AG'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.
OMV AG's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, OMV AG's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where OMV AG's Sloan Ratio % falls into.
OMV AG 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.
OMV AG's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
OMV AG's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 275.9 (Dec. 2023 ) + 528.261 (Mar. 2024 ) + 424.112 (Jun. 2024 ) + 285.239 (Sep. 2024 ) = $1,514 Mil.
OMV AG's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 1190.84 (Dec. 2023 ) + 1981.522 (Mar. 2024 ) + 1272.336 (Jun. 2024 ) + 1577.137 (Sep. 2024 ) = $6,022 Mil.
OMV AG's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -1095.965 (Dec. 2023 ) + -891.304 (Mar. 2024 ) + -836.383 (Jun. 2024 ) + -1308.546 (Sep. 2024 ) = $-4,132 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.
OMV AG (OTCPK:OMVJF) 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 Sep. 2024, OMV AG has a Sloan Ratio of -0.70%, indicating the company is in the safe zone and there is no funny business with accruals.
OMV AG Sloan Ratio % Related Terms
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OMV AG is an international, integrated oil and gas company that operates in the Energy, Fuels and Feedstock, and Chemicals & Materials segments. The company has exploration and production assets in a multitude of countries in Europe, Asia, and Africa. The Energy segment engages in the business of oil and gas exploration, development and production. The Fuels and Feedstock segment which generates key revenue, refines and markets crude oil and other feedstock. The Chemicals & Materials (C&M) segment provides circular polyolefin solutions and base chemicals, fertilizers, and plastics recycling. Geographically, the company generates a majority of its revenue from Austria and the rest from its operations in Germany, Romania, Norway, and other regions.
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