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.
ChromoGenics AB's Sloan Ratio for the quarter that ended in Mar. 2024 was -5.01%.
As of Mar. 2024, ChromoGenics AB has a Sloan Ratio of -5.01%, indicating the company is in the safe zone and there is no funny business with accruals.
ChromoGenics AB Sloan Ratio % Historical Data
The historical data trend for ChromoGenics AB'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 ChromoGenics AB's Sloan Ratio %
For the Building Products & Equipment subindustry, ChromoGenics AB'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.
ChromoGenics AB's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, ChromoGenics AB's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where ChromoGenics AB's Sloan Ratio % falls into.
ChromoGenics AB 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.
ChromoGenics AB's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
ChromoGenics AB's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -13.09 (Mar. 2023 ) + -11.858 (Jun. 2023 ) + -10.959 (Sep. 2023 ) + -13.609 (Mar. 2024 ) = kr-49.52 Mil.
ChromoGenics AB's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -12.827 (Mar. 2023 ) + -15.15 (Jun. 2023 ) + -2.584 (Sep. 2023 ) + -11.842 (Mar. 2024 ) = kr-42.40 Mil.
ChromoGenics AB's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -0.178 (Mar. 2023 ) + -0.193 (Jun. 2023 ) + 0.222 (Sep. 2023 ) + -0.142 (Mar. 2024 ) = kr-0.29 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.
ChromoGenics AB (OSTO:CHRO) 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, ChromoGenics AB has a Sloan Ratio of -5.01%, indicating the company is in the safe zone and there is no funny business with accruals.
ChromoGenics AB Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of ChromoGenics AB's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
ChromoGenics AB develops and produces dynamic glass with controllable optical properties in Sweden and internationally. The company offers ConverLight, an electrochromic glass, which provides UV protection for use in single glass pane and insulating glass unit solutions. This glass is suitable for new construction, reconstruction, and renovation and offers ultraviolet protection that reduces the risk of fading interiors.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
OSTO:CHRO has been successfully added to your 