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.
Stroeer SE KGaA's Sloan Ratio for the quarter that ended in Mar. 2024 was -6.65%.
As of Mar. 2024, Stroeer SE KGaA has a Sloan Ratio of -6.65%, indicating the company is in the safe zone and there is no funny business with accruals.
Stroeer SE KGaA Sloan Ratio % Historical Data
The historical data trend for Stroeer SE KGaA'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 Stroeer SE KGaA's Sloan Ratio %
For the Advertising Agencies subindustry, Stroeer SE KGaA'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.
Stroeer SE KGaA's Sloan Ratio % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Stroeer SE KGaA's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Stroeer SE KGaA's Sloan Ratio % falls into.
Stroeer SE KGaA 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.
Stroeer SE KGaA's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Stroeer SE KGaA's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 20.998 (Jun. 2023 ) + 29.015 (Sep. 2023 ) + 51.195 (Dec. 2023 ) + 0.924 (Mar. 2024 ) = $102 Mil.
Stroeer SE KGaA's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 94.794 (Jun. 2023 ) + 90.954 (Sep. 2023 ) + 191.731 (Dec. 2023 ) + 47.799 (Mar. 2024 ) = $425 Mil.
Stroeer SE KGaA's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -34.784 (Jun. 2023 ) + -33.779 (Sep. 2023 ) + -33.37 (Dec. 2023 ) + -21.133 (Mar. 2024 ) = $-123 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.
Stroeer SE KGaA (GREY:SOTDY) 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, Stroeer SE KGaA has a Sloan Ratio of -6.65%, indicating the company is in the safe zone and there is no funny business with accruals.
Stroeer SE KGaA Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Stroeer SE KGaA's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Stroeer SE KGaA (Stroeer SE KGaA) Business Description
Stroeer SE & Co KGaA is a Germany-based holding company focused on promotional media services outside of the home. It operates in three main business segments, Out of Home (OOH) Media, Digital & Dialog Media, and DaaS & E-commerce. The OOH Media segment encompasses the Group's entire OOH advertising business, comprising the Classic OOH, Digital OOH, and OOH services product groups. Digital & Dialog Media segment provides solutions for online advertising in the context of proprietary and third-party content. The scalable products marketed on this basis range from branding and storytelling to performance, native advertising, and social media. Geographically, it generates the majority of its revenue from Germany.
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