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.
Perseus Mining's Sloan Ratio for the quarter that ended in Jun. 2024 was 10.96%.
As of Jun. 2024, Perseus Mining has a Sloan Ratio of 10.96%, indicating there is a warning stage of accrual build up.
Perseus Mining Sloan Ratio % Historical Data
The historical data trend for Perseus Mining'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 Perseus Mining's Sloan Ratio %
For the Gold subindustry, Perseus Mining'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.
Perseus Mining's Sloan Ratio % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Perseus Mining's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Perseus Mining's Sloan Ratio % falls into.
Perseus Mining 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.
Perseus Mining'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.
Perseus Mining's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was 195.208 (Dec. 2023 ) + 245.014 (Jun. 2024 ) = C$440 Mil.
Perseus Mining's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was 283.362 (Dec. 2023 ) + 298.722 (Jun. 2024 ) = C$582 Mil.
Perseus Mining's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was -128.403 (Dec. 2023 ) + -311.617 (Jun. 2024 ) = C$-440 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.
Perseus Mining (TSX:PRU) 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 Jun. 2024, Perseus Mining has a Sloan Ratio of 10.96%, indicating there is a warning stage of accrual build up.
Perseus Mining Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Perseus Mining's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Perseus is an Australia-based gold miner. It sold around 510,000 ounces of gold in fiscal 2024 from its three majority-owned mines in West Africa. Founded in 2004, Perseus bought all three of its operating mines originally as exploration licenses or development projects. Its 90%-owned Edikan mine in Ghana achieved first gold in 2011, with 86%-owned Sissingue and 90%-owned Yaoure in Ivory Coast following in 2018 and 2020, respectively. The company also purchased its 70%-owned Meyas Sand gold project in Sudan in 2022 and its 80%-owned Nyanzaga gold project in Tanzania in fiscal 2024. Excluding Meyas Sand, where development is on hold due to armed conflict in Sudan, it had about six years of reserves at the end of fiscal 2024. We forecast it sells about 480,000 ounces of gold in fiscal 2025.
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