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.
Vossloh AG's Sloan Ratio for the quarter that ended in Mar. 2024 was 0.00%.
As of Mar. 2024, Vossloh AG has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Vossloh AG Sloan Ratio % Historical Data
The historical data trend for Vossloh AG'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 Vossloh AG's Sloan Ratio %
For the Railroads subindustry, Vossloh AG'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.
Vossloh AG's Sloan Ratio % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Vossloh AG's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Vossloh AG's Sloan Ratio % falls into.
Vossloh AG 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.
Vossloh AG's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Vossloh AG's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 22.102 (Jun. 2023 ) + 11.419 (Sep. 2023 ) + 11.778 (Dec. 2023 ) + 9.13 (Mar. 2024 ) = $54 Mil.
Vossloh AG's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 82.015 (Jun. 2023 ) + 26.254 (Sep. 2023 ) + 58.233 (Dec. 2023 ) + -14.457 (Mar. 2024 ) = $152 Mil.
Vossloh AG's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) + 0 (Mar. 2024 ) = $0 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.
Vossloh AG (OTCPK:VOSSF) 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, Vossloh AG has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Vossloh AG Sloan Ratio % Related Terms
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Vossloh AG is a rail infrastructure manufacturer domiciled in Germany. The company organizes itself into three segments: customized modules (switch systems), core components, and life cycle solutions (rail solutions). The customized modules segment, which generates the majority of revenue, manufactures, installs, and maintains switch systems and monitoring equipment for rail networks. The core components segment, the next most significant segment, provides rail fastening systems and manufactures concrete railway ties. The life cycle solutions segment maintains, tracks, switches, and recycles old rails. The company derives the majority of revenue in Europe, with significant operations in Asia and the Americas.
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