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.
Gerresheimer AG's Sloan Ratio for the quarter that ended in Aug. 2024 was 6.31%.
As of Aug. 2024, Gerresheimer AG has a Sloan Ratio of 6.31%, indicating the company is in the safe zone and there is no funny business with accruals.
Gerresheimer AG Sloan Ratio % Historical Data
The historical data trend for Gerresheimer 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 Gerresheimer AG's Sloan Ratio %
For the Medical Instruments & Supplies subindustry, Gerresheimer 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.
Gerresheimer AG's Sloan Ratio % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Gerresheimer AG's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Gerresheimer AG's Sloan Ratio % falls into.
Gerresheimer 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.
Gerresheimer AG's Sloan Ratio for the fiscal year that ended in Nov. 2023 is calculated as
Gerresheimer AG's Net Income for the trailing twelve months (TTM) ended in Aug. 2024 was 41.617 (Nov. 2023 ) + 13.008 (Feb. 2024 ) + 32.462 (May. 2024 ) + 27.209 (Aug. 2024 ) = €114 Mil.
Gerresheimer AG's Cash Flow from Operations for the trailing twelve months (TTM) ended in Aug. 2024 was 149.363 (Nov. 2023 ) + 27.259 (Feb. 2024 ) + 7.983 (May. 2024 ) + 71.264 (Aug. 2024 ) = €256 Mil.
Gerresheimer AG's Cash Flow from Investing for the trailing twelve months (TTM) ended in Aug. 2024 was -97.74 (Nov. 2023 ) + -106.564 (Feb. 2024 ) + -86.053 (May. 2024 ) + -76.058 (Aug. 2024 ) = €-366 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.
Gerresheimer AG (WBO:GXI) 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 Aug. 2024, Gerresheimer AG has a Sloan Ratio of 6.31%, indicating the company is in the safe zone and there is no funny business with accruals.
Gerresheimer AG Sloan Ratio % Related Terms
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Gerresheimer AG provides medicine packaging, drug delivery devices, and solutions with a product range for pharma, health, well-being, and biotech. The firm operates in three segments: The plastics and devices segment consists of products for simple and safe drug delivery along with packaging for liquid and solid medicines, The primary packaging glass segment produces glass packaging products for the pharma and cosmetics industries also for food and beverage industry and The advanced technologies segment works on technical and digital solutions to improve the therapy outcome for patients. The company generates the majority of its revenue in Europe, with sales in Germany contributing the major proportion of any country.
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