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.
Lion E-Mobility AG's Sloan Ratio for the quarter that ended in Dec. 2022 was 29.32%.
Warning Sign:
When sloan ratio (29.32)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2022, Lion E-Mobility AG has a Sloan Ratio of 29.32%, indicating earnings are more likely to be made up of accruals.
Lion E-Mobility AG Sloan Ratio % Historical Data
The historical data trend for Lion E-Mobility AG'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 Lion E-Mobility AG's Sloan Ratio %
For the Electrical Equipment & Parts subindustry, Lion E-Mobility AG'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.
Lion E-Mobility AG's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Lion E-Mobility AG's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Lion E-Mobility AG's Sloan Ratio % falls into.
Lion E-Mobility AG 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.
Lion E-Mobility AG's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
* 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.
Lion E-Mobility AG (XTER:LMIA) 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. 2022, Lion E-Mobility AG has a Sloan Ratio of 29.32%, indicating earnings are more likely to be made up of accruals.
Lion E-Mobility AG Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Lion E-Mobility AG's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Lion E-Mobility AG (XTER:LMIA) Business Description
Lion E-Mobility AG is engaged in the field of electrical energy storage and lithium-ion battery technology. The main business activities are carried out within the subsidiary LION Smart GmbH, which develops and sells battery packs and battery management systems, and its associate TUV SUD Battery Testing GmbH, which tests and certifies storage systems for electrical energy.
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