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.
Vantage Towers AG's Sloan Ratio for the quarter that ended in Mar. 2023 was -0.35%.
As of Mar. 2023, Vantage Towers AG has a Sloan Ratio of -0.35%, indicating the company is in the safe zone and there is no funny business with accruals.
Vantage Towers AG (OTCPK:VTWRF) 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. 2023, Vantage Towers AG has a Sloan Ratio of -0.35%, indicating the company is in the safe zone and there is no funny business with accruals.
Vantage Towers AG Sloan Ratio % Related Terms
Vantage Towers AG Sloan Ratio % Historical Data
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The historical data trend for Vantage Towers 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.
VTWRF vs BEKE, CBRE, CSGP: Sloan Ratio % Comparison
For the Real Estate Services subindustry, Vantage Towers 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.
Vantage Towers AG Sloan Ratio % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Vantage Towers AG's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Vantage Towers AG's Sloan Ratio % falls into.
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.
Vantage Towers AG's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Vantage Towers AG's Net Income for the trailing twelve months (TTM) ended in Mar. 2023 was 187.03 (Sep. 2022 ) + 304.283 (Mar. 2023 ) = $491 Mil.
Vantage Towers AG's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2023 was 369.109 (Sep. 2022 ) + 454.711 (Mar. 2023 ) = $824 Mil.
Vantage Towers AG's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2023 was -69.307 (Sep. 2022 ) + -221.734 (Mar. 2023 ) = $-291 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.
Vantage Towers AG (VTWRF) has a Sloan Ratio % of -0.35% as of Mar. 2023. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Vantage Towers AG and its competitors.
Is Vantage Towers AG's Sloan Ratio % too high?
Vantage Towers AG's current Sloan Ratio % is -0.35%. Overall, Vantage Towers AG has a GF Score™ of 44/100, reflecting its overall financial health beyond just this single metric.
How does Vantage Towers AG's Sloan Ratio % compare to BEKE and CBRE?
Vantage Towers AG's Sloan Ratio % of -0.35% can be compared against companies in the Real Estate industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Real Estate company?
A good Sloan Ratio % depends on the Real Estate industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Vantage Towers AG and its competitors. Vantage Towers AG's current Sloan Ratio % is -0.35%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vantage Towers AG stock overvalued right now?
Vantage Towers AG (VTWRF) has a current Sloan Ratio % of -0.35%. The current Sloan Ratio % is -0.35%. Vantage Towers AG's overall GF Score™ is 44/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Vantage Towers AG (VTWRF), the current Sloan Ratio % is -0.35% as of Mar. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Vantage is the tower arm of Vodafone, spun off in 2021. Vantage fully owns 45,000 towers in Germany, Spain, Greece, and other European countries. Vantage also owns stakes in Inwit (22,000 towers, Vantage owns 33% stake), the Italian tower operator resulting from the merger of Vodafone and Telecom Italia's towers in the region, and Cornerstone (14,000 towers, 50% stake) a tower joint venture in the U.K. with Telefonica.
44GF Score
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