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.
Veolia Environnement's Sloan Ratio for the quarter that ended in Dec. 2023 was -2.68%.
As of Dec. 2023, Veolia Environnement has a Sloan Ratio of -2.68%, indicating the company is in the safe zone and there is no funny business with accruals.
Veolia Environnement Sloan Ratio % Historical Data
The historical data trend for Veolia Environnement'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 Veolia Environnement's Sloan Ratio %
For the Waste Management subindustry, Veolia Environnement'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.
Veolia Environnement's Sloan Ratio % Distribution in the Waste Management Industry
For the Waste Management industry and Industrials sector, Veolia Environnement's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Veolia Environnement's Sloan Ratio % falls into.
Veolia Environnement 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.
Veolia Environnement's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Veolia Environnement's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 566.522 (Jun. 2023 ) + 451.581 (Dec. 2023 ) = $1,018 Mil.
Veolia Environnement's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 1727.844 (Jun. 2023 ) + 3718.866 (Dec. 2023 ) = $5,447 Mil.
Veolia Environnement's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -699.35 (Jun. 2023 ) + -1612.323 (Dec. 2023 ) = $-2,312 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.
Veolia Environnement (OTCPK:VEOEY) 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. 2023, Veolia Environnement has a Sloan Ratio of -2.68%, indicating the company is in the safe zone and there is no funny business with accruals.
Veolia Environnement Sloan Ratio % Related Terms
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Veolia Environnement (Veolia Environnement) Business Description
Veolia is the largest water company globally and a leading player in France. It is also involved in waste management with a significant exposure to France, the United Kingdom, Germany, the United States, and Australia. The third pillar of the group is energy services, giving the group significant exposure to Central Europe. Veolia started to refocus its activities in 2011, leading to the exit of almost half of its countries and of its transport activity. The integration of most activities of the historical rival Suez in 2022 drove a turnover increase of nearly 40%.
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