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.
Whitehaven Coal's Sloan Ratio for the quarter that ended in Dec. 2024 was 17.80%.
Warning Sign:
When sloan ratio (29.82)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2024, Whitehaven Coal has a Sloan Ratio of 17.80%, indicating earnings are more likely to be made up of accruals.
Whitehaven Coal Sloan Ratio % Historical Data
The historical data trend for Whitehaven Coal'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 Whitehaven Coal's Sloan Ratio %
For the Thermal Coal subindustry, Whitehaven Coal'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.
Whitehaven Coal's Sloan Ratio % Distribution in the Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, Whitehaven Coal's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Whitehaven Coal's Sloan Ratio % falls into.
Whitehaven Coal 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.
Whitehaven Coal's Sloan Ratio for the fiscal year that ended in Jun. 2024 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Whitehaven Coal's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was 60.07 (Jun. 2024 ) + 46.571 (Dec. 2024 ) = €107 Mil.
Whitehaven Coal's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was 421.677 (Jun. 2024 ) + 498.366 (Dec. 2024 ) = €920 Mil.
Whitehaven Coal's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -2123.642 (Jun. 2024 ) + -114.31 (Dec. 2024 ) = €-2,238 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.
Whitehaven Coal (STU:WC2) 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 Dec. 2024, Whitehaven Coal has a Sloan Ratio of 17.80%, indicating earnings are more likely to be made up of accruals.
Whitehaven Coal Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Whitehaven Coal's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Whitehaven Coal is a large Australian independent thermal and metallurgical coal miner with mines in the Gunnedah Basin, New South Wales. It also bought Blackwater and Daunia, two coking coal mines in Queensland, from BHP and Mitsubishi in April 2024. In addition, it owns the large Vickery and Winchester South deposits in New South Wales and Queensland, respectively. Coal is railed to ports in Newcastle and Queensland for export to Asian customers. Along with expanded production at Maules Creek and Narrabri, we expect its share of salable coal production to approach 32 million metric tons from fiscal 2029, from about 13 million in fiscal 2023. Initial development of Vickery will see around 1 million metric tons of extra equity production, with potential expansion to 7 million metric tons.
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