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.
SP New Energy's Sloan Ratio for the quarter that ended in Sep. 2024 was 26.90%.
As of Sep. 2024, SP New Energy has a Sloan Ratio of 26.90%, indicating earnings are more likely to be made up of accruals.
SP New Energy (PHS:SPNEC) 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, SP New Energy has a Sloan Ratio of 26.90%, indicating earnings are more likely to be made up of accruals.
SP New Energy Sloan Ratio % Related Terms
SP New Energy Sloan Ratio % Historical Data
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The historical data trend for SP New Energy'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.
For the Utilities - Renewable subindustry, SP New Energy'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.
SP New Energy Sloan Ratio % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, SP New Energy's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where SP New Energy's Sloan Ratio % falls into.
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.
SP New Energy's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
SP New Energy's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 5813.715 (Dec. 2023 ) + 47.502 (Mar. 2024 ) + 73.539 (Jun. 2024 ) + -252.283 (Sep. 2024 ) = ₱5,682 Mil.
SP New Energy's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 206.145 (Dec. 2023 ) + 334.404 (Mar. 2024 ) + 380.128 (Jun. 2024 ) + 467.317 (Sep. 2024 ) = ₱1,388 Mil.
SP New Energy's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -5630.112 (Dec. 2023 ) + -330.421 (Mar. 2024 ) + -1911.718 (Jun. 2024 ) + -1514.783 (Sep. 2024 ) = ₱-9,387 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.
SP New Energy (PHS:SPNEC) has a Sloan Ratio % of 26.90% as of Sep. 2024. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on SP New Energy and its competitors.
Is SP New Energy's Sloan Ratio % too high?
SP New Energy's current Sloan Ratio % is 26.90%. Overall, SP New Energy has a GF Score™ of 33/100, reflecting its overall financial health beyond just this single metric.
How does SP New Energy's Sloan Ratio % compare to CEG?
SP New Energy's Sloan Ratio % of 26.90% can be compared against companies in the Utilities - Independent Power Producers 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 an Utilities - Independent Power Producers company?
A good Sloan Ratio % depends on the Utilities - Independent Power Producers 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 SP New Energy and its competitors. SP New Energy's current Sloan Ratio % is 26.90%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SP New Energy stock overvalued right now?
SP New Energy (PHS:SPNEC) has a current Sloan Ratio % of 26.90%. The current Sloan Ratio % is 26.90%. SP New Energy's overall GF Score™ is 33/100. 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 SP New Energy (PHS:SPNEC), the current Sloan Ratio % is 26.90% as of Sep. 2024. 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.
SP New Energy Corp mainly to engage in the construction, operation and maintenance of all types of renewable energy plants and related services. The Group has only one geographical segment Philippines.
33GF Score
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