What is LyondellBasell Industries NV Sloan Ratio %?
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.
As of Dec. 2023, LyondellBasell Industries NV has a Sloan Ratio of -2.84%, indicating the company is in the safe zone and there is no funny business with accruals.
LyondellBasell Industries NV Sloan Ratio % Historical Data
* 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 LyondellBasell Industries NV's Sloan Ratio %
For the Specialty Chemicals subindustry, LyondellBasell Industries NV'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.
LyondellBasell Industries NV's Sloan Ratio % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, LyondellBasell Industries NV's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where LyondellBasell Industries NV's Sloan Ratio % falls into.
LyondellBasell Industries NV 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.
LyondellBasell Industries NV's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 472 (Mar. 2023 ) + 714 (Jun. 2023 ) + 745 (Sep. 2023 ) + 183 (Dec. 2023 ) = $2,114 Mil.
LyondellBasell Industries NV's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 482 (Mar. 2023 ) + 1290 (Jun. 2023 ) + 1666 (Sep. 2023 ) + 1504 (Dec. 2023 ) = $4,942 Mil.
LyondellBasell Industries NV's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -371 (Mar. 2023 ) + -371 (Jun. 2023 ) + -429 (Sep. 2023 ) + -606 (Dec. 2023 ) = $-1,777 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.
LyondellBasell Industries NV (NYSE:LYB) 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, LyondellBasell Industries NV has a Sloan Ratio of -2.84%, indicating the company is in the safe zone and there is no funny business with accruals.
LyondellBasell Industries NV Sloan Ratio % Related Terms
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LyondellBasell Industries NV (LyondellBasell Industries NV) Business Description
LyondellBasell is a petrochemical producer with operations in the United States, Europe, and Asia. The company is the world's largest producer of polypropylene and is also a major producer of polyethylene and propylene oxide. Its chemicals are used in various consumer and industrial end products. Well over half of LyondellBasell's production come from its North American operations.
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