Switch to:

Vodafone Group Sloan Ratio %

: -5.31% (As of Sep. 2020)
View and export this data going back to 1988. Start your Free Trial

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.

Vodafone Group's Sloan Ratio for the quarter that ended in Sep. 2020 was -5.31%.

As of Sep. 2020, Vodafone Group has a Sloan Ratio of -5.31%, indicating the company is in the safe zone and there is no funny business with accruals.


Vodafone Group Sloan Ratio % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Vodafone Group Annual Data
Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20
Sloan Ratio % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.47 -7.82 -0.91 -8.25 -6.07

Vodafone Group Semi-Annual Data
Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20
Sloan Ratio % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -7.66 -8.44 -2.91 -6.07 -5.31

Competitive Comparison
* 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.


Vodafone Group Sloan Ratio % Distribution

* The bar in red indicates where Vodafone Group's Sloan Ratio % falls into.



Vodafone 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.

Vodafone Group's Sloan Ratio for the fiscal year that ended in Mar. 2020 is calculated as

Sloan Ratio=(Net Income (A: )-Cash Flow from Operations (A: Mar. 2020 )
-Cash Flow from Investing (A: Mar. 2020 ))/Total Assets (A: Mar. 2020 )
=(-1016.5745856354-19203.314917127
--8937.0165745856)/185820.99447514
=-6.07%

Vodafone Group's Sloan Ratio for the quarter that ended in Sep. 2020 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM})
-Cash Flow from Investing (TTM))/Total Assets (Q: Sep. 2020 )
=(2882.5098100463-19497.628018663
--6812.8809323937)/184760.89517079
=-5.31%

For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data. Vodafone Group's Net Income for the trailing twelve months (TTM) ended in Sep. 2020 was 1334.8066298343 (Mar. 2020 ) + 1547.703180212 (Sep. 2020 ) = $2,883 Mil.
Vodafone Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2020 was 12419.889502762 (Mar. 2020 ) + 7077.7385159011 (Sep. 2020 ) = $19,498 Mil.
Vodafone Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2020 was -908.28729281768 (Mar. 2020 ) + -5904.593639576 (Sep. 2020 ) = $-6,813 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Vodafone Group  (NAS:VOD) 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.

According to How to Beat the Market with the Sloan Ratio:

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. 2020, Vodafone Group has a Sloan Ratio of -5.31%, indicating the company is in the safe zone and there is no funny business with accruals.


Vodafone Group Sloan Ratio % Related Terms


Vodafone Group Sloan Ratio % Headlines

No Headline

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)