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.
Fibria Celulose's Sloan Ratio for the quarter that ended in Sep. 2018 was -1.29%.
As of Sep. 2018, Fibria Celulose has a Sloan Ratio of -1.29%, indicating the company is in the safe zone and there is no funny business with accruals.
Fibria Celulose Sloan Ratio % Historical Data
The historical data trend for Fibria Celulose'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 Fibria Celulose's Sloan Ratio %
For the Paper & Paper Products subindustry, Fibria Celulose'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.
Fibria Celulose's Sloan Ratio % Distribution in the Forest Products Industry
For the Forest Products industry and Basic Materials sector, Fibria Celulose's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Fibria Celulose's Sloan Ratio % falls into.
Fibria Celulose 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.
Fibria Celulose's Sloan Ratio for the fiscal year that ended in Dec. 2017 is calculated as
Fibria Celulose's Net Income for the trailing twelve months (TTM) ended in Sep. 2018 was 84.466 (Dec. 2017 ) + 187.021 (Mar. 2018 ) + -56.298 (Jun. 2018 ) + 274.325 (Sep. 2018 ) = $490 Mil.
Fibria Celulose's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2018 was 421.051 (Dec. 2017 ) + 140.066 (Mar. 2018 ) + 619.272 (Jun. 2018 ) + 546.915 (Sep. 2018 ) = $1,727 Mil.
Fibria Celulose's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2018 was -8.505 (Dec. 2017 ) + -344.766 (Mar. 2018 ) + -603.27 (Jun. 2018 ) + -147.427 (Sep. 2018 ) = $-1,104 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.
Fibria Celulose (NYSE:FBR) 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 Sep. 2018, Fibria Celulose has a Sloan Ratio of -1.29%, indicating the company is in the safe zone and there is no funny business with accruals.
Fibria Celulose Sloan Ratio % Related Terms
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Fibria Celulose (Fibria Celulose) Business Description
Fibria Celulose SA manufactures and sells eucalyptus pulp. The firm classifies its end products into sanitary paper, printing and writing, and special papers. The sanitary paper segment generates more pulp revenue than any other segment. More revenue comes from Europe than any other geography. The company owns forest land and mills in Brazil, where it harvests timber and turns the timber into pulp products in its mills. Fibria Celulose also operates a shipping port specialized for the shipment of pulp.
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