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.
Norseman Gold's Sloan Ratio for the quarter that ended in Jun. 2014 was 43.88%.
Warning Sign:
When Sloan Ratio (43.89)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Jun. 2014, Norseman Gold has a Sloan Ratio of 43.88%, indicating earnings are more likely to be made up of accruals.
Norseman Gold Sloan Ratio % Historical Data
The historical data trend for Norseman Gold'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 Norseman Gold's Sloan Ratio %
For the Gold subindustry, Norseman Gold'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.
Norseman Gold's Sloan Ratio % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Norseman Gold's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Norseman Gold's Sloan Ratio % falls into.
Norseman Gold 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.
Norseman Gold's Sloan Ratio for the fiscal year that ended in Jun. 2014 is calculated as
For company reported annually, GuruFocus uses latest annual data as the TTM data.
Norseman Gold's Net Income for the trailing twelve months (TTM) ended in Jun. 2014 was £-3.80 Mil.
Norseman Gold's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2014 was £-4.06 Mil.
Norseman Gold's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2014 was £-1.86 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.
Norseman Gold (LSE:NGL) 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 Jun. 2014, Norseman Gold has a Sloan Ratio of 43.88%, indicating earnings are more likely to be made up of accruals.
Norseman Gold Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Norseman Gold's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Norseman Gold PLC is engaged in the production, exploration, evaluation and development of mineral resources. It is involved in the operation of Central Norseman Gold Corporation Ltd (the Norseman Project). The Norseman Project is located adjacent to the Norseman township, approximately 725 kilometres east of Perth, Western Australia. Current operations source ore from the Bullen underground mine and the Harlequin underground mine using underground mining methods of airleg up dip room and pillar stoping and long-hole stoping.
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