Compania deneamento de Minas Gerais - COPASA MG (Compania deneamento de Minas Gerais - COPASA MG) Sloan Ratio % : 8.22% (As of Mar. 2024)

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What is Compania deneamento de Minas Gerais - COPASA MG 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.

Compania deneamento de Minas Gerais - COPASA MG's Sloan Ratio for the quarter that ended in Mar. 2024 was 8.22%.

As of Mar. 2024, Compania deneamento de Minas Gerais - COPASA MG has a Sloan Ratio of 8.22%, indicating the company is in the safe zone and there is no funny business with accruals.

Compania deneamento de Minas Gerais - COPASA MG Sloan Ratio % Historical Data

The historical data trend for Compania deneamento de Minas Gerais - COPASA MG'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.

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Compania deneamento de Minas Gerais - COPASA MG Sloan Ratio % Chart

Compania deneamento de Minas Gerais - COPASA MG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Sloan Ratio %

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1.09

-2.08

-1.85

7.31

8.54

Compania deneamento de Minas Gerais - COPASA MG Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Sloan Ratio %	Get a 7-Day Free Trial															6.05	5.87	6.91	8.40	8.22

Competitive Comparison of Compania deneamento de Minas Gerais - COPASA MG's Sloan Ratio %

For the Utilities - Regulated Water subindustry, Compania deneamento de Minas Gerais - COPASA MG'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.

Compania deneamento de Minas Gerais - COPASA MG's Sloan Ratio % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Compania deneamento de Minas Gerais - COPASA MG's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Compania deneamento de Minas Gerais - COPASA MG's Sloan Ratio % falls into.

Compania deneamento de Minas Gerais - COPASA MG 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.

Compania deneamento de Minas Gerais - COPASA MG's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (A: Dec. 2023 )	-	Cash Flow from Operations (A: Dec. 2023 )
	-	Cash Flow from Investing (A: Dec. 2023 ))	/	Total Assets (A: Dec. 2023 )
	=	(281.511	-	353.955
	-	-319.718)	/	2896.009
	=	8.54%

Compania deneamento de Minas Gerais - COPASA MG's Sloan Ratio for the quarter that ended in Mar. 2024 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Mar. 2024 )
	=	(282.964	-	384.38
	-	-334.871)	/	2840.544
	=	8.22%

Compania deneamento de Minas Gerais - COPASA MG's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 51.358 (Jun. 2023 ) + 88.508 (Sep. 2023 ) + 72.503 (Dec. 2023 ) + 70.595 (Mar. 2024 ) = $283 Mil.
Compania deneamento de Minas Gerais - COPASA MG's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 105.887 (Jun. 2023 ) + 98.502 (Sep. 2023 ) + 85.958 (Dec. 2023 ) + 94.033 (Mar. 2024 ) = $384 Mil.
Compania deneamento de Minas Gerais - COPASA MG's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -77.845 (Jun. 2023 ) + -99.5 (Sep. 2023 ) + -89.48 (Dec. 2023 ) + -68.046 (Mar. 2024 ) = $-335 Mil.

Compania deneamento de Minas Gerais - COPASA MG (OTCPK:CSMQY) 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.

According to How to Beat the Market with the Sloan Ratio:

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, Compania deneamento de Minas Gerais - COPASA MG has a Sloan Ratio of 8.22%, indicating the company is in the safe zone and there is no funny business with accruals.

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Compania deneamento de Minas Gerais - COPASA MG (Compania deneamento de Minas Gerais - COPASA MG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Compania de Saneamento de Minas Gerais - COPASA MG (OTCPK:CSMQY) » Definitions » Sloan Ratio %

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CSMG3:Brazil

Address

Rua Mar de Espanha 525, Santo Antonio, Belo Horizonte, MG, BRA, 30330900

Website

http://www.copasa.com.br

COPASA MG provides water supply, sewage, and solid waste services. The company operates out of subsidiaries COPASA Serviços de Irrigaçao S.A., COPASA Aguas Minerais de Minas S.A, and COPANOR. COPASA Serviços de Irrigaçao S.A. manages, performs, and sells irrigation system services. COPASA Águas Minerais de Minas S.A. produces, bottles, distributes, and sells mineral water. COPANOR provides water supply and sewage treatment services across the North and Northeast regions of the State of Minas Gerais. A majority of revenue is derived from water services while the rest is derived from sewage services. The company operates out of Brazil, where a significant amount of revenue is generated.

Compania deneamento de Minas Gerais - COPASA MG (Compania deneamento de Minas Gerais - COPASA MG) Headlines

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