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.
Inmet Mining's Sloan Ratio for the quarter that ended in Dec. 2012 was 35.06%.
As of Dec. 2012, Inmet Mining has a Sloan Ratio of 35.06%, indicating earnings are more likely to be made up of accruals.
Inmet Mining Sloan Ratio % Historical Data
The historical data trend for Inmet Mining'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 Inmet Mining's Sloan Ratio %
For the Other Industrial Metals & Mining subindustry, Inmet Mining'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.
Inmet Mining's Sloan Ratio % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Inmet Mining's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Inmet Mining's Sloan Ratio % falls into.
Inmet Mining 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.
Inmet Mining's Sloan Ratio for the fiscal year that ended in Dec. 2012 is calculated as
Inmet Mining's Net Income for the trailing twelve months (TTM) ended in Dec. 2012 was 72.885 (Mar. 2012 ) + 75.283 (Jun. 2012 ) + 90.426 (Sep. 2012 ) + 20.684 (Dec. 2012 ) = €259.3 Mil.
Inmet Mining's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2012 was 89.67 (Mar. 2012 ) + 137.396 (Jun. 2012 ) + 105.3 (Sep. 2012 ) + 89.04 (Dec. 2012 ) = €421.4 Mil.
Inmet Mining's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2012 was 173.915 (Mar. 2012 ) + -10.705 (Jun. 2012 ) + -1347.273 (Sep. 2012 ) + -736.787 (Dec. 2012 ) = €-1,920.9 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.
Inmet Mining (FRA:MMC) 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. 2012, Inmet Mining has a Sloan Ratio of 35.06%, indicating earnings are more likely to be made up of accruals.
Inmet Mining Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Inmet Mining's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Inmet Mining Corporation is a Canadian-based global mining company that produces base metals with a focus on copper. It operates and develops underground and open pit mines safely, responsibly and cost effectively. The Company has three operating properties and one development property around the world. Çayeli is an underground mine on the Black Sea coast of northeastern Turkey. It produces copper and zinc concentrates, which are sold to international and domestic smelters and traders. Las Cruces is an open pit mine in southern Spain. Las Cruces uses leaching and electrowinning technology to produce copper cathode which are sold to buyers in the Spanish and Mediterranean markets. Pyhäsalmi is an underground copper and zinc mine in central Finland. It produces copper, zinc and pyrite concentrates. Copper and zinc concentrates are sold under long-term contracts to smelters in Finland. Pyrite is sold under contract to customers in Europe and Asia as well as in the spot market. Cobre Panama is an open pit copper development project in Panama.
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