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.
BlueScope Steel's Sloan Ratio for the quarter that ended in Dec. 2023 was -0.02%.
As of Dec. 2023, BlueScope Steel has a Sloan Ratio of -0.02%, indicating the company is in the safe zone and there is no funny business with accruals.
BlueScope Steel Sloan Ratio % Historical Data
The historical data trend for BlueScope Steel'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 BlueScope Steel's Sloan Ratio %
For the Steel subindustry, BlueScope Steel'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.
BlueScope Steel's Sloan Ratio % Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, BlueScope Steel's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where BlueScope Steel's Sloan Ratio % falls into.
BlueScope Steel 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.
BlueScope Steel's Sloan Ratio for the fiscal year that ended in Jun. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
BlueScope Steel's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 410.3 (Jun. 2023 ) + 439.3 (Dec. 2023 ) = A$850 Mil.
BlueScope Steel's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 1045.4 (Jun. 2023 ) + 720.9 (Dec. 2023 ) = A$1,766 Mil.
BlueScope Steel's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -459.6 (Jun. 2023 ) + -454.8 (Dec. 2023 ) = A$-914 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.
BlueScope Steel (ASX:BSL) 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, BlueScope Steel has a Sloan Ratio of -0.02%, indicating the company is in the safe zone and there is no funny business with accruals.
BlueScope Steel Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of BlueScope Steel's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
BlueScope is an Australian-based steelmaking firm with five business units. The Australian Steel Products segment mainly specializes in branded coated and painted flat steel products, sold domestically. North Star is the group's U.S. mini-mill specializing in the production of hot rolled coil for U.S. construction and automotive sectors. Building Products Asia and North America operate across Southeast Asia, China, India, and the U.S. West Coast involved in metal-coating, painting, and roll-forming. New Zealand Steel and the Pacific Islands business produces flat and long steel products for New Zealand and building components for the Pacific Islands. The Buildings North America segment specializes in non-residential buildings, including materials manufacturing and support services.
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