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.
NIBE Industrier AB's Sloan Ratio for the quarter that ended in Dec. 2023 was 19.50%.
As of Dec. 2023, NIBE Industrier AB has a Sloan Ratio of 19.50%, indicating there is a warning stage of accrual build up.
NIBE Industrier AB Sloan Ratio % Historical Data
The historical data trend for NIBE Industrier AB'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 NIBE Industrier AB's Sloan Ratio %
For the Building Products & Equipment subindustry, NIBE Industrier AB'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.
NIBE Industrier AB's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, NIBE Industrier AB's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where NIBE Industrier AB's Sloan Ratio % falls into.
NIBE Industrier AB 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.
NIBE Industrier AB's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
NIBE Industrier AB's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 112.195 (Mar. 2023 ) + 110.281 (Jun. 2023 ) + 98.686 (Sep. 2023 ) + 82.622 (Dec. 2023 ) = CHF404 Mil.
NIBE Industrier AB's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 34.63 (Mar. 2023 ) + 86.201 (Jun. 2023 ) + 13.228 (Sep. 2023 ) + 189.188 (Dec. 2023 ) = CHF323 Mil.
NIBE Industrier AB's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -94.173 (Mar. 2023 ) + -91.803 (Jun. 2023 ) + -696.807 (Sep. 2023 ) + -156.307 (Dec. 2023 ) = CHF-1,039 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.
NIBE Industrier AB (XSWX:NIBEB) 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 Dec. 2023, NIBE Industrier AB has a Sloan Ratio of 19.50%, indicating there is a warning stage of accrual build up.
NIBE Industrier AB Sloan Ratio % Related Terms
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NIBE Industrier AB (XSWX:NIBEB) Business Description
NIBE Industrier AB manufactures and sells energy-efficient products for industrial and consumer use. The firm is organized into three segments by product type. The climate solutions segment, which generates the majority of revenue, sells HVAC systems and hot water heaters to homes, apartment buildings, and other large properties. The elements segment sells components and elements to multiple industries, including appliance manufacturers, home remodelers, energy, and automotive. The stoves segment sells energy-efficient stoves and chimney systems to residential and commercial customers. The vast majority of revenue comes from Europe.
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