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.
Newmont's Sloan Ratio for the quarter that ended in Dec. 2023 was -7.67%.
As of Dec. 2023, Newmont has a Sloan Ratio of -7.67%, indicating the company is in the safe zone and there is no funny business with accruals.
Newmont Sloan Ratio % Historical Data
The historical data trend for Newmont'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.
For the Gold subindustry, Newmont'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.
Newmont's Sloan Ratio % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Newmont's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Newmont's Sloan Ratio % falls into.
Newmont 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.
Newmont's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Newmont's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 351 (Mar. 2023 ) + 155 (Jun. 2023 ) + 158 (Sep. 2023 ) + -3158 (Dec. 2023 ) = $-2,494 Mil.
Newmont's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 481 (Mar. 2023 ) + 663 (Jun. 2023 ) + 1003 (Sep. 2023 ) + 616 (Dec. 2023 ) = $2,763 Mil.
Newmont's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -342 (Mar. 2023 ) + -158 (Jun. 2023 ) + -253 (Sep. 2023 ) + -249 (Dec. 2023 ) = $-1,002 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.
Newmont (NYSE:NEM) 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, Newmont has a Sloan Ratio of -7.67%, indicating the company is in the safe zone and there is no funny business with accruals.
Newmont Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Newmont's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Newmont is the world's largest gold miner. It bought Goldcorp in 2019, combined its Nevada mines in a joint venture with competitor Barrick later that year, and also purchased competitor Newcrest in November 2023. Its portfolio includes 17 wholly or majority owned mines and interests in two joint ventures in the Americas, Africa, Australia and Papua New Guinea. The company is expected to produce roughly 7.3 million ounces of gold in 2023 pro forma for Newcrest on an annualized basis. Newmont also produces material amounts of copper, silver, zinc, and lead as byproducts from its various gold mines. It had about two decades of gold reserves along with significant byproduct reserves after acquiring Newcrest.
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