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.
Sanlorenzo SpA's Sloan Ratio for the quarter that ended in Sep. 2023 was 2.16%.
As of Sep. 2023, Sanlorenzo SpA has a Sloan Ratio of 2.16%, indicating the company is in the safe zone and there is no funny business with accruals.
Sanlorenzo SpA Sloan Ratio % Historical Data
The historical data trend for Sanlorenzo SpA'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 Sanlorenzo SpA's Sloan Ratio %
For the Recreational Vehicles subindustry, Sanlorenzo SpA'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.
Sanlorenzo SpA's Sloan Ratio % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Sanlorenzo SpA's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sanlorenzo SpA's Sloan Ratio % falls into.
Sanlorenzo SpA 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.
Sanlorenzo SpA's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
Sanlorenzo SpA's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was 21.913 (Dec. 2022 ) + 17.208 (Mar. 2023 ) + 21.835 (Jun. 2023 ) + 27.896 (Sep. 2023 ) = €88.9 Mil.
Sanlorenzo SpA's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was 17.654 (Dec. 2022 ) + 15.277 (Mar. 2023 ) + 73.604 (Jun. 2023 ) + 19.45 (Sep. 2023 ) = €126.0 Mil.
Sanlorenzo SpA's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was -18.985 (Dec. 2022 ) + -8.245 (Mar. 2023 ) + -17.467 (Jun. 2023 ) + -9.673 (Sep. 2023 ) = €-54.4 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.
Sanlorenzo SpA (MIL:SL) 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. 2023, Sanlorenzo SpA has a Sloan Ratio of 2.16%, indicating the company is in the safe zone and there is no funny business with accruals.
Sanlorenzo SpA Sloan Ratio % Related Terms
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Sanlorenzo SpA is engaged in developing, designing, and building motor yachts. The company operates in three segments: Yacht, Superyacht, and Blue game, of which the majority of its revenue comes from the Yacht segment that designs, manufactures, and markets composite yachts between 24 and 38 meters long, under the Sanlorenzo brand. Its manufacturing activities are carried out through shipyards located in Spezia, Ameglia, Viareggio, and Massa. The company's geographical segments are Italy, Europe (other countries), United States, the Americas (other countries), Asia Pacific, and the Middle East and Africa.
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