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.
Constellium SE's Sloan Ratio for the quarter that ended in Dec. 2023 was -1.98%.
As of Dec. 2023, Constellium SE has a Sloan Ratio of -1.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Constellium SE Sloan Ratio % Historical Data
The historical data trend for Constellium SE'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 Constellium SE's Sloan Ratio %
For the Aluminum subindustry, Constellium SE'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.
Constellium SE's Sloan Ratio % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Constellium SE's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Constellium SE's Sloan Ratio % falls into.
Constellium SE 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.
Constellium SE's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Constellium SE's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 21.413 (Mar. 2023 ) + 33.586 (Jun. 2023 ) + 68.303 (Sep. 2023 ) + 10.905 (Dec. 2023 ) = $134 Mil.
Constellium SE's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 36.403 (Mar. 2023 ) + 144.095 (Jun. 2023 ) + 164.354 (Sep. 2023 ) + 201.745 (Dec. 2023 ) = $547 Mil.
Constellium SE's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -72.805 (Mar. 2023 ) + -70.423 (Jun. 2023 ) + -29.883 (Sep. 2023 ) + -138.495 (Dec. 2023 ) = $-312 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.
Constellium SE (NYSE:CSTM) 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, Constellium SE has a Sloan Ratio of -1.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Constellium SE Sloan Ratio % Related Terms
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Constellium SE (Constellium SE) Business Description
Constellium SE is engaged in the design and manufacture of rolled and extruded aluminium products, serving the packaging, aerospace, automotive, defense and other transportation and industry end-markets. The business is organized into three operating segments: i) Packaging and Automotive Rolled Products segment includes the production of rolled aluminium products in European and North American facilities. ii) Aerospace and Transportation segment includes the production of rolled aluminium products and very limited volumes of extruded products in European and North American facilities. iii) Automotive Structures and Industry segment includes the production of extruded aluminium products and aluminium structural components.
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