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.
Anglo American's Sloan Ratio for the quarter that ended in Dec. 2023 was -0.98%.
As of Dec. 2023, Anglo American has a Sloan Ratio of -0.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Anglo American Sloan Ratio % Historical Data
The historical data trend for Anglo American'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 Anglo American's Sloan Ratio %
For the Other Industrial Metals & Mining subindustry, Anglo American'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.
Anglo American's Sloan Ratio % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Anglo American's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Anglo American's Sloan Ratio % falls into.
Anglo American 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.
Anglo American'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.
Anglo American's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 1262 (Jun. 2023 ) + -979 (Dec. 2023 ) = $283 Mil.
Anglo American's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 3043 (Jun. 2023 ) + 3453 (Dec. 2023 ) = $6,496 Mil.
Anglo American's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -2530 (Jun. 2023 ) + -3030 (Dec. 2023 ) = $-5,560 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.
Anglo American (OTCPK:NGLOY) 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, Anglo American has a Sloan Ratio of -0.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Anglo American Sloan Ratio % Related Terms
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Anglo American (Anglo American) Business Description
Anglo American's mining portfolio spans many commodities and continents. Like fellow large diversified miners, Anglo has significant exposure to copper, iron ore and metallurgical coal, but it is unique among the global majors given its significant platinum group metals and diamonds output. The company accounts for about one third of the world's platinum supply and around 30% of palladium supply. Anglo also owns 85% of De Beers, in most years the world's largest supplier and marketer of rough gem diamonds by value. Anglo also plans to move back into the crop nutrients business via its Woodsmith polyhalite project in the United Kingdom.
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