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.
Holmen AB's Sloan Ratio for the quarter that ended in Sep. 2024 was 1.56%.
As of Sep. 2024, Holmen AB has a Sloan Ratio of 1.56%, indicating the company is in the safe zone and there is no funny business with accruals.
Holmen AB Sloan Ratio % Historical Data
The historical data trend for Holmen 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 Holmen AB's Sloan Ratio %
For the Paper & Paper Products subindustry, Holmen 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.
Holmen AB's Sloan Ratio % Distribution in the Forest Products Industry
For the Forest Products industry and Basic Materials sector, Holmen AB's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Holmen AB's Sloan Ratio % falls into.
Holmen 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.
Holmen AB's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Holmen AB's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 538 (Dec. 2023 ) + 744 (Mar. 2024 ) + 744 (Jun. 2024 ) + 816 (Sep. 2024 ) = kr2,842 Mil.
Holmen AB's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 1328 (Dec. 2023 ) + 472 (Mar. 2024 ) + 1043 (Jun. 2024 ) + 711 (Sep. 2024 ) = kr3,554 Mil.
Holmen AB's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -594 (Dec. 2023 ) + -486 (Mar. 2024 ) + -392 (Jun. 2024 ) + -508 (Sep. 2024 ) = kr-1,980 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.
Holmen AB (OSTO:HOLM A) 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, Holmen AB has a Sloan Ratio of 1.56%, indicating the company is in the safe zone and there is no funny business with accruals.
Holmen AB Sloan Ratio % Related Terms
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Holmen AB produces and sells timber, wood products, a variety of paper products, and electricity generated through renewable energy sources. The company organizes itself into five segments based on product type: Forest, Paperboard, Paper, Wood Products, and Renewable Energy. The company's product portfolio includes logs, biofuel, paperboard for consumer packaging, paper for books, construction timber, and renewable energy from hydro and wind power. The company's customer segment is composed of printing firms, sawmills, pulp mills, paper mills, the construction industry, and the packaging industry, among others. The vast majority of revenue comes from the company's paper and paperboard segments combined, and it earns the majority of its revenue in Europe.
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