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, L E Lundbergforetagen AB has a Sloan Ratio of 2.54%, indicating the company is in the safe zone and there is no funny business with accruals.
L E Lundbergforetagen AB 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 L E Lundbergforetagen AB's Sloan Ratio %
For the Asset Management subindustry, L E Lundbergforetagen AB'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.
L E Lundbergforetagen AB's Sloan Ratio % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, L E Lundbergforetagen AB's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where L E Lundbergforetagen AB's Sloan Ratio % falls into.
L E Lundbergforetagen AB 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.
L E Lundbergforetagen AB's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
L E Lundbergforetagen AB's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 892 (Jun. 2023 ) + 108 (Sep. 2023 ) + 3280 (Dec. 2023 ) + 4326 (Mar. 2024 ) = kr8,606 Mil.
L E Lundbergforetagen AB's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 3186 (Jun. 2023 ) + 957 (Sep. 2023 ) + 2202 (Dec. 2023 ) + 1707 (Mar. 2024 ) = kr8,052 Mil.
L E Lundbergforetagen AB's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -1214 (Jun. 2023 ) + -1202 (Sep. 2023 ) + -1306 (Dec. 2023 ) + -1368 (Mar. 2024 ) = kr-5,090 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.
L E Lundbergforetagen AB (OSTO:LUND B) 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, L E Lundbergforetagen AB has a Sloan Ratio of 2.54%, indicating the company is in the safe zone and there is no funny business with accruals.
L E Lundbergforetagen AB Sloan Ratio % Related Terms
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L E Lundbergforetagen AB (OSTO:LUND B) Business Description
L E Lundbergforetagen AB is an investment holding company with a long-term, activist orientation. Its portfolio includes a wholly owned unlisted real estate entity, publicly-traded subsidiaries, and other major shareholdings. Lundberg's investment objective is to generate returns on capital that over time substantially exceed the yield on a risk-free, interest-bearing instrument. Real estate operations, which the company has conducted through subsidiaries for decades, account for nearly half of the company's net asset value. Lundberg exercises activism through board representation on all of its portfolio companies. It supports its capital allocation program by maintaining low levels of indebtedness on its balance sheet.
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