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 Sep. 2020, Abra Mining & Industrial has a Sloan Ratio of 0.18%, indicating the company is in the safe zone and there is no funny business with accruals.
Abra Mining & Industrial (PHS:AR) 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. 2020, Abra Mining & Industrial has a Sloan Ratio of 0.18%, indicating the company is in the safe zone and there is no funny business with accruals.
Abra Mining & Industrial Sloan Ratio % Related Terms
Abra Mining & Industrial 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.
Abra Mining & Industrial Sloan Ratio % Competitor Comparison
For the Other Industrial Metals & Mining subindustry, Abra Mining & Industrial'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.
Abra Mining & Industrial Sloan Ratio % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Abra Mining & Industrial's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Abra Mining & Industrial's Sloan Ratio % falls into.
Abra Mining & Industrial 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.
Abra Mining & Industrial's Sloan Ratio for the fiscal year that ended in Dec. 2019 is calculated as
Abra Mining & Industrial's Net Income for the trailing twelve months (TTM) ended in Sep. 2020 was -0.484 (Dec. 2019 ) + -0.557 (Mar. 2020 ) + -0.037 (Jun. 2020 ) + -0.24 (Sep. 2020 ) = ₱-1.32 Mil.
Abra Mining & Industrial's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2020 was 36.716 (Dec. 2019 ) + -1.756 (Mar. 2020 ) + 1.808 (Jun. 2020 ) + -0.196 (Sep. 2020 ) = ₱36.57 Mil.
Abra Mining & Industrial's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2020 was -40.102 (Dec. 2019 ) + -0.709 (Mar. 2020 ) + 0.451 (Jun. 2020 ) + -0.78 (Sep. 2020 ) = ₱-41.14 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.
Abra Mining & Industrial (PHS:AR) has a Sloan Ratio % of 0.18% as of Sep. 2020. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Abra Mining & Industrial and its competitors.
Is Abra Mining & Industrial's Sloan Ratio % too high?
Abra Mining & Industrial's current Sloan Ratio % is 0.18%.
How does Abra Mining & Industrial's Sloan Ratio % compare to competitors?
Abra Mining & Industrial's Sloan Ratio % of 0.18% can be compared against companies in the Metals & Mining industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Metals & Mining company?
A good Sloan Ratio % depends on the Metals & Mining industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Abra Mining & Industrial and its competitors. Abra Mining & Industrial's current Sloan Ratio % is 0.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Abra Mining & Industrial stock overvalued right now?
Abra Mining & Industrial (PHS:AR) has a current Sloan Ratio % of 0.18%. The current Sloan Ratio % is 0.18%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Abra Mining & Industrial (PHS:AR), the current Sloan Ratio % is 0.18% as of Sep. 2020. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Abra Mining & Industrial Corp is a Philippines-based mineral exploration company. The principal business activities of the company are exploration, development, exploitation, manufacture and sale of cement and metal concentrate, building materials, and other minerals. In addition, it is also involved in the processing and manufacture of non-metals for industrial and commercial purposes. The firm's projects include Capcapo Copper-Gold, Bucay Iron Sand, Baticang Limestone, Patok Gold- Copper, and SanVig iron sand project.
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