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.
KSB SE KGaA's Sloan Ratio for the quarter that ended in Dec. 2023 was -0.92%.
As of Dec. 2023, KSB SE KGaA has a Sloan Ratio of -0.92%, indicating the company is in the safe zone and there is no funny business with accruals.
KSB SE KGaA Sloan Ratio % Historical Data
The historical data trend for KSB SE KGaA'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 KSB SE KGaA's Sloan Ratio %
For the Specialty Industrial Machinery subindustry, KSB SE KGaA'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.
KSB SE KGaA's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, KSB SE KGaA's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where KSB SE KGaA's Sloan Ratio % falls into.
KSB SE KGaA 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.
KSB SE KGaA's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
KSB SE KGaA's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 62.046 (Jun. 2023 ) + 90.249 (Dec. 2023 ) = €152 Mil.
KSB SE KGaA's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 57.779 (Jun. 2023 ) + 222.525 (Dec. 2023 ) = €280 Mil.
KSB SE KGaA's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -33.995 (Jun. 2023 ) + -69.541 (Dec. 2023 ) = €-104 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.
KSB SE KGaA (XTER:KSB3) 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, KSB SE KGaA has a Sloan Ratio of -0.92%, indicating the company is in the safe zone and there is no funny business with accruals.
KSB SE KGaA Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of KSB SE KGaA's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
KSB SE & Co KGaA is a German-based company. It is a provider of pumps, valves, and related services. Its operations are carried out in three segments namely Pumps, Valves, and KSB SupremeServ Segment comprises the spare parts business for pumps and valves. A majority part of its sales and revenue is comes from the Pumps segment. The Pumps segment includes single and multistage pumps, submersible pumps, and associated control and drives systems. The company's pumps are used in various applications where fluids need to be transported as well as in other applications which belong to industry, building services, water engineering, wastewater engineering, energy supply, and mining.
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