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 Dec. 2023, Norske Skogindustrier ASA has a Sloan Ratio of 8.40%, indicating the company is in the safe zone and there is no funny business with accruals.
Norske Skogindustrier ASA 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 Norske Skogindustrier ASA's Sloan Ratio %
For the Paper & Paper Products subindustry, Norske Skogindustrier ASA'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.
Norske Skogindustrier ASA's Sloan Ratio % Distribution in the Forest Products Industry
For the Forest Products industry and Basic Materials sector, Norske Skogindustrier ASA's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Norske Skogindustrier ASA's Sloan Ratio % falls into.
Norske Skogindustrier ASA 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.
Norske Skogindustrier ASA's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Norske Skogindustrier ASA's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -181 (Mar. 2023 ) + 45 (Jun. 2023 ) + 134 (Sep. 2023 ) + 482 (Dec. 2023 ) = kr480 Mil.
Norske Skogindustrier ASA's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 430 (Mar. 2023 ) + 353 (Jun. 2023 ) + 173 (Sep. 2023 ) + 972 (Dec. 2023 ) = kr1,928 Mil.
Norske Skogindustrier ASA's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -367 (Mar. 2023 ) + -695 (Jun. 2023 ) + -949 (Sep. 2023 ) + -677 (Dec. 2023 ) = kr-2,688 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.
Norske Skogindustrier ASA (OSTO:NSGo) 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, Norske Skogindustrier ASA has a Sloan Ratio of 8.40%, indicating the company is in the safe zone and there is no funny business with accruals.
Norske Skogindustrier ASA Sloan Ratio % Related Terms
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Norske Skogindustrier ASA (OSTO:NSGO) Business Description
Norske Skog ASA is an industrial company in publication paper, packaging paper, energy production, and bioproducts. Publication paper products comprise both newsprint and magazine paper, both of which are marketed under the NOR brand. Packaging paper includes the recycled containerboard grades test liner and fluting, which are marketed under the STRATO brand. The company's core bioproducts are the nano cellulose product CEBINA and the bio-composite product CEBICO. Norske Skog owns and operates four industrial sites in Europe, and one industrial site in Australasia.
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