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. 2021, MMX Mineracao E Metalicos has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
MMX Mineracao E Metalicos 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 MMX Mineracao E Metalicos's Sloan Ratio %
For the Other Industrial Metals & Mining subindustry, MMX Mineracao E Metalicos'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.
MMX Mineracao E Metalicos's Sloan Ratio % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, MMX Mineracao E Metalicos's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where MMX Mineracao E Metalicos's Sloan Ratio % falls into.
MMX Mineracao E Metalicos 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.
MMX Mineracao E Metalicos's Sloan Ratio for the fiscal year that ended in Dec. 2020 is calculated as
MMX Mineracao E Metalicos's Net Income for the trailing twelve months (TTM) ended in Mar. 2021 was -3.684 (Jun. 2020 ) + -2.574 (Sep. 2020 ) + 4.047 (Dec. 2020 ) + -5.276 (Mar. 2021 ) = $-7.49 Mil.
MMX Mineracao E Metalicos's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2021 was 0.085 (Jun. 2020 ) + -0.207 (Sep. 2020 ) + -0.01 (Dec. 2020 ) + 0.048 (Mar. 2021 ) = $-0.08 Mil.
MMX Mineracao E Metalicos's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2021 was 0 (Jun. 2020 ) + 0 (Sep. 2020 ) + 0 (Dec. 2020 ) + 0 (Mar. 2021 ) = $0.00 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.
MMX Mineracao E Metalicos (GREY:MMXXF) 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. 2021, MMX Mineracao E Metalicos has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
MMX Mineracao E Metalicos Sloan Ratio % Related Terms
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MMX Mineracao E Metalicos (MMX Mineracao E Metalicos) Business Description
MMX Mineracao E Metalicos SA (MMX) is a Brazil-based company engaged in iron ore mining. The company has installed capacity to produce about 7 million metric tons of iron ore per year in its two systems, namely The Southeast System and the Corumba System. The Southeast System is formed by the Serra Azul and Bom Sucesso Units. It exploits the Tico-Tico and Ipe mines, located in the Serra Azul Region-in the iron mining area of Minas Gerais State. The company has also acquired the mining rights for the Pau de Vinho Mine. The iron ore produced by the Serra Azul Unit is sold to customers in Brazil and other countries.
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