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.
REC Silicon ASA's Sloan Ratio for the quarter that ended in Mar. 2024 was 44.07%.
As of Mar. 2024, REC Silicon ASA has a Sloan Ratio of 44.07%, indicating there is a warning stage of accrual build up.
REC Silicon ASA Sloan Ratio % Historical Data
The historical data trend for REC Silicon ASA'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 REC Silicon ASA's Sloan Ratio %
For the Semiconductor Equipment & Materials subindustry, REC Silicon 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.
REC Silicon ASA's Sloan Ratio % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, REC Silicon ASA's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where REC Silicon ASA's Sloan Ratio % falls into.
REC Silicon 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.
REC Silicon ASA's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
REC Silicon ASA's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -158.707 (Jun. 2023 ) + -265.973 (Sep. 2023 ) + 1101.357 (Dec. 2023 ) + -429.79 (Mar. 2024 ) = kr247 Mil.
REC Silicon ASA's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -241.839 (Jun. 2023 ) + 93.305 (Sep. 2023 ) + -567.558 (Dec. 2023 ) + -352.322 (Mar. 2024 ) = kr-1,068 Mil.
REC Silicon ASA's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -448.051 (Jun. 2023 ) + -437.568 (Sep. 2023 ) + 245.801 (Dec. 2023 ) + -368.24 (Mar. 2024 ) = kr-1,008 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.
REC Silicon ASA (OSTO:RECo) 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, REC Silicon ASA has a Sloan Ratio of 44.07%, indicating there is a warning stage of accrual build up.
REC Silicon ASA Sloan Ratio % Related Terms
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REC Silicon ASA is a producer of silicon materials, supplying high-purity polysilicon and silicon gases to the solar and electronics industries. The product offered by the group includes Solar grade polysilicon, Electronic grade polysilicon and Silicon gases. It operates in two segments namely Solar Materials and Semiconductor Materials. Majority of the firm's revenue gets generated through Semiconductor Materials segment.
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