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.
MTN Group's Sloan Ratio for the quarter that ended in Dec. 2023 was -1.78%.
As of Dec. 2023, MTN Group has a Sloan Ratio of -1.78%, indicating the company is in the safe zone and there is no funny business with accruals.
MTN Group Sloan Ratio % Historical Data
The historical data trend for MTN Group'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 MTN Group's Sloan Ratio %
For the Telecom Services subindustry, MTN Group'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.
MTN Group's Sloan Ratio % Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, MTN Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where MTN Group's Sloan Ratio % falls into.
MTN Group 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.
MTN Group'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.
MTN Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 492.67 (Jun. 2023 ) + -276.019 (Dec. 2023 ) = $217 Mil.
MTN Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 1665.849 (Jun. 2023 ) + 1762.054 (Dec. 2023 ) = $3,428 Mil.
MTN Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -1225.567 (Jun. 2023 ) + -1571.53 (Dec. 2023 ) = $-2,797 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.
MTN Group (OTCPK:MTNOY) 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, MTN Group has a Sloan Ratio of -1.78%, indicating the company is in the safe zone and there is no funny business with accruals.
MTN Group Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of MTN Group's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
MTN Group Ltd is a mobile telecommunications provider operating across South Africa, Nigeria, Ghana, Cameroon, Ivory Coast, Uganda, Syria, and Sudan. most of the company's revenue is earned in South Africa and Nigeria. The company also has a joint venture in Iran. From a product perspective, most of its revenue is from voice and data. Other contributors include SMS and sale of devices revenue. MTN also provides enterprise services to small/midsize enterprises and corporate clients. The company owns the mobile infrastructure and data centers. Its segments include Network services, Mobile devices, Inter- connect and roaming, Digital and fintech and others.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
MTNOY has been successfully added to your 