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.
Telefonica Brasil's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.00%.
As of Dec. 2023, Telefonica Brasil has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Telefonica Brasil Sloan Ratio % Historical Data
The historical data trend for Telefonica Brasil'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 Telefonica Brasil's Sloan Ratio %
For the Telecom Services subindustry, Telefonica Brasil'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.
Telefonica Brasil's Sloan Ratio % Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telefonica Brasil's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Telefonica Brasil's Sloan Ratio % falls into.
Telefonica Brasil 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.
Telefonica Brasil's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Telefonica Brasil's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 214.728 (Dec. 2022 ) + 231.273 (Jun. 2023 ) + 297.962 (Sep. 2023 ) + 326.676 (Dec. 2023 ) = $1,071 Mil.
Telefonica Brasil's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 891.373 (Dec. 2022 ) + 0 (Jun. 2023 ) + 959.631 (Sep. 2023 ) + 782.613 (Dec. 2023 ) = $2,634 Mil.
Telefonica Brasil's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -610.416 (Dec. 2022 ) + 0 (Jun. 2023 ) + -419.561 (Sep. 2023 ) + -460.216 (Dec. 2023 ) = $-1,490 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.
Telefonica Brasil (NYSE:VIV) 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, Telefonica Brasil has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Telefonica Brasil Sloan Ratio % Related Terms
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Telefonica Brasil (Telefonica Brasil) Business Description
Telefonica Brasil, known as Vivo, is the largest wireless carrier in Brazil with 98 million customers, equal to about 40% market share. The firm is strongest in the postpaid business, where it has 60 million customers, about 42% share of this market. It is the incumbent fixed-line telephone operator in Sao Paulo state and, following the acquisition of GVT, the owner of an extensive fiber network across the country. The firm provides internet access to 6 million households on this network. Following its parent Telefonica's footsteps, Vivo is cross-selling fixed-line and wireless services as a converged offering. The firm also sells pay-tv services to its fixed-line customers.
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