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.
Canfor Pulp Products's Sloan Ratio for the quarter that ended in Mar. 2024 was -10.40%.
As of Mar. 2024, Canfor Pulp Products has a Sloan Ratio of -10.40%, indicating there is a warning stage of accrual build up.
Canfor Pulp Products Sloan Ratio % Historical Data
The historical data trend for Canfor Pulp Products'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 Canfor Pulp Products's Sloan Ratio %
For the Paper & Paper Products subindustry, Canfor Pulp Products'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.
Canfor Pulp Products's Sloan Ratio % Distribution in the Forest Products Industry
For the Forest Products industry and Basic Materials sector, Canfor Pulp Products's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Canfor Pulp Products's Sloan Ratio % falls into.
Canfor Pulp Products 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.
Canfor Pulp Products's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Canfor Pulp Products's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -28.4 (Jun. 2023 ) + -35.7 (Sep. 2023 ) + -13.2 (Dec. 2023 ) + -2.4 (Mar. 2024 ) = C$-79.7 Mil.
Canfor Pulp Products's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 27.2 (Jun. 2023 ) + -15.3 (Sep. 2023 ) + 20.1 (Dec. 2023 ) + 15 (Mar. 2024 ) = C$47.0 Mil.
Canfor Pulp Products's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -10 (Jun. 2023 ) + -16.5 (Sep. 2023 ) + -21.5 (Dec. 2023 ) + -9.9 (Mar. 2024 ) = C$-57.9 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.
Canfor Pulp Products (TSX:CFX) 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, Canfor Pulp Products has a Sloan Ratio of -10.40%, indicating there is a warning stage of accrual build up.
Canfor Pulp Products Sloan Ratio % Related Terms
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Canfor Pulp Products (TSX:CFX) Business Description
Canfor Pulp Products Inc produces and sells northern bleached softwood kraft pulp, or NBSK pulp and paper. The company also generates and sells electricity from biomass out of its pulp plants in Western Canada. The firm organizes itself into two segments based on product: pulp and paper. The pulp segment generates Majority of the revenue. Canfor Pulp's NBSK pulp customers are typically manufacturers of tissue paper, specialty paper, and printing and writing paper. Majority of Canfor Pulp's revenue comes from Asia. The majority of the company's shares are owned by Canfor Corporation.
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