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 Mar. 2024, A. P. Moller Maersk A/S has a Sloan Ratio of -1.67%, indicating the company is in the safe zone and there is no funny business with accruals.
A. P. Moller Maersk A/S 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 A. P. Moller Maersk A/S's Sloan Ratio %
For the Marine Shipping subindustry, A. P. Moller Maersk A/S'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.
A. P. Moller Maersk A/S's Sloan Ratio % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, A. P. Moller Maersk A/S's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where A. P. Moller Maersk A/S's Sloan Ratio % falls into.
A. P. Moller Maersk A/S 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.
A. P. Moller Maersk A/S's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
A. P. Moller Maersk A/S's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 1453 (Jun. 2023 ) + 521 (Sep. 2023 ) + -436 (Dec. 2023 ) + 177 (Mar. 2024 ) = $1,715 Mil.
A. P. Moller Maersk A/S's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 2758 (Jun. 2023 ) + 1385 (Sep. 2023 ) + 166 (Dec. 2023 ) + 1095 (Mar. 2024 ) = $5,404 Mil.
A. P. Moller Maersk A/S's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -631 (Jun. 2023 ) + -2909 (Sep. 2023 ) + 536 (Dec. 2023 ) + 681 (Mar. 2024 ) = $-2,323 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.
A. P. Moller Maersk A/S (OTCPK:AMKAF) 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 Mar. 2024, A. P. Moller Maersk A/S has a Sloan Ratio of -1.67%, indicating the company is in the safe zone and there is no funny business with accruals.
A. P. Moller Maersk A/S Sloan Ratio % Related Terms
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A. P. Moller Maersk A/S (A. P. Moller Maersk A/S) Business Description
A.P. Moller-Maersk is a Denmark-listed global conglomerate involved in global trade, shipping, and energy. Maersk Line, the largest contributor to group revenue and earnings, has been the largest container shipping company globally for more than 20 years. Maersk was founded in 1904 and has since been run by the Moller-Maersk family, which currently holds slightly more than 50% of the share capital. The group has been active over the past few years in divesting noncore operations, such as its long-standing stakes in Danske Bank and Dansk Supermarked as well as its oil and gas operations.
A. P. Moller Maersk A/S (A. P. Moller Maersk A/S) Headlines
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