What is Rayonier Advanced Materials 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, Rayonier Advanced Materials has a Sloan Ratio of -5.08%, indicating the company is in the safe zone and there is no funny business with accruals.
Rayonier Advanced Materials 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 Rayonier Advanced Materials's Sloan Ratio %
For the Chemicals subindustry, Rayonier Advanced Materials'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.
Rayonier Advanced Materials's Sloan Ratio % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Rayonier Advanced Materials's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Rayonier Advanced Materials's Sloan Ratio % falls into.
Rayonier Advanced Materials 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.
Rayonier Advanced Materials's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 1.607 (Mar. 2023 ) + -16.75 (Jun. 2023 ) + -25.1 (Sep. 2023 ) + -61.592 (Dec. 2023 ) = $-102 Mil.
Rayonier Advanced Materials's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 51.389 (Mar. 2023 ) + 32.471 (Jun. 2023 ) + -1.721 (Sep. 2023 ) + 54.135 (Dec. 2023 ) = $136 Mil.
Rayonier Advanced Materials's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -21.348 (Mar. 2023 ) + -32.975 (Jun. 2023 ) + -41.295 (Sep. 2023 ) + -31.663 (Dec. 2023 ) = $-127 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.
Rayonier Advanced Materials (NYSE:RYAM) 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, Rayonier Advanced Materials has a Sloan Ratio of -5.08%, indicating the company is in the safe zone and there is no funny business with accruals.
Rayonier Advanced Materials Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Rayonier Advanced Materials's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Rayonier Advanced Materials (Rayonier Advanced Materials) Business Description
Rayonier Advanced Materials Inc manufactures high-purity cellulose derived from wood. Also known as cellulose specialties, the company's products are used in a variety of applications, including cigarette filters, liquid crystal displays, paints, pharmaceuticals, and food. The company operates in the reportable segments of High Purity Cellulose, Paperboard, High-Yield Pulp, and Corporate and Other. The key revenue is derived from the High Purity Cellulose segment. Geographically, it derives a majority of revenue from the United States.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
RYAM has been successfully added to your 