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.
SSAB AB's Sloan Ratio for the quarter that ended in Mar. 2024 was -2.25%.
As of Mar. 2024, SSAB AB has a Sloan Ratio of -2.25%, indicating the company is in the safe zone and there is no funny business with accruals.
SSAB AB Sloan Ratio % Historical Data
The historical data trend for SSAB AB'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 Steel subindustry, SSAB AB'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.
SSAB AB's Sloan Ratio % Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, SSAB AB's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where SSAB AB's Sloan Ratio % falls into.
SSAB AB 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.
SSAB AB's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
SSAB AB's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 364.283 (Jun. 2023 ) + 316.289 (Sep. 2023 ) + 185.229 (Dec. 2023 ) + 247.135 (Mar. 2024 ) = $1,113 Mil.
SSAB AB's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 498.185 (Jun. 2023 ) + 547.958 (Sep. 2023 ) + 658.439 (Dec. 2023 ) + 170.584 (Mar. 2024 ) = $1,875 Mil.
SSAB AB's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -86.265 (Jun. 2023 ) + -88.048 (Sep. 2023 ) + -221.299 (Dec. 2023 ) + -122.847 (Mar. 2024 ) = $-518 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.
SSAB AB (OTCPK:SSAAY) 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, SSAB AB has a Sloan Ratio of -2.25%, indicating the company is in the safe zone and there is no funny business with accruals.
SSAB AB Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of SSAB AB's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
SSAB is a Sweden-based company that operates through five divisions. SSAB special steels sell structural high-strength steel, wear-resistant steel, protection steel, and tool steel. SSAB Europe is a Nordic-based producer of the strip, plate, and tube products. SSAB Americas is a Northern American steel plate and coil maker. Tibnor, SSAB's subsidiary, is a Nordic distributor of steel and nonferrous metals. Ruukki Construction, another subsidiary of SSAB, is a Europe-based provider of energy-efficient building and construction solutions. Steel products represent the majority of the company's sales. SSAB primarily serves customers from heavy transport, construction, automotive, construction machinery, energy, and other sectors. SSAB generates most of its revenue from Europe and North America.
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