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Verallia (WBO:VRLA) Sloan Ratio % : 3.36% (As of Jun. 2024)


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What is Verallia Sloan Ratio %?

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.

Verallia's Sloan Ratio for the quarter that ended in Jun. 2024 was 3.36%.

As of Jun. 2024, Verallia has a Sloan Ratio of 3.36%, indicating the company is in the safe zone and there is no funny business with accruals.


Verallia Sloan Ratio % Historical Data

The historical data trend for Verallia'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.

* Premium members only.

Verallia Sloan Ratio % Chart

Verallia Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only -4.82 -4.83 -3.34 4.07 1.61

Verallia Semi-Annual Data
Dec16 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -4.29 4.07 6.64 1.61 3.36

Competitive Comparison of Verallia's Sloan Ratio %

For the Packaging & Containers subindustry, Verallia'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.


Verallia's Sloan Ratio % Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Verallia's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Verallia's Sloan Ratio % falls into.



Verallia 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.

Verallia's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2023 )-Cash Flow from Operations (A: Dec. 2023 )
-Cash Flow from Investing (A: Dec. 2023 ))/Total Assets (A: Dec. 2023 )
=(470-857.9
--459.6)/4460.3
=1.61%

Verallia's Sloan Ratio for the quarter that ended in Jun. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Jun. 2024 )
=(283.3-605.3
--472.5)/4480.4
=3.36%

For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data. Verallia's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was 159.2 (Dec. 2023 ) + 124.1 (Jun. 2024 ) = €283 Mil.
Verallia's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was 356 (Dec. 2023 ) + 249.3 (Jun. 2024 ) = €605 Mil.
Verallia's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was -227 (Dec. 2023 ) + -245.5 (Jun. 2024 ) = €-473 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.


Verallia  (WBO:VRLA) 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.

According to How to Beat the Market with the Sloan Ratio:

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, Verallia has a Sloan Ratio of 3.36%, indicating the company is in the safe zone and there is no funny business with accruals.


Verallia Sloan Ratio % Related Terms

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Verallia Business Description

Traded in Other Exchanges
Address
31 Place des Corolles, Tour Carpe Diem, Esplanade Nord, Courbevoie, FRA, 92400
Verallia is a manufacturer of glass containers for the food and beverage industries. As a global supplier and partner for its customers in the wine, spirits and food markets. The Group has identified the following 3 operating segments corresponding to the geographical areas in which the assets are located. Southern and Western Europe, comprising production sites located in France, Italy, Spain and Portugal. Southern and Western Europe. Northern and Eastern Europe, comprising production sites located in Germany, the United Kingdom, Poland, Ukraine and Russia. Latin America, comprising production sites located in Brazil, Argentina, and Chile. The company generates the majority of its revenue from Southern and Western Europe.

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