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 Feb. 2024, Econet Wireless Zimbabwe has a Sloan Ratio of -9.52%, indicating the company is in the safe zone and there is no funny business with accruals.
Econet Wireless Zimbabwe 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 Econet Wireless Zimbabwe's Sloan Ratio %
For the Telecom Services subindustry, Econet Wireless Zimbabwe'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.
Econet Wireless Zimbabwe's Sloan Ratio % Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Econet Wireless Zimbabwe's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Econet Wireless Zimbabwe's Sloan Ratio % falls into.
Econet Wireless Zimbabwe 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.
Econet Wireless Zimbabwe's Sloan Ratio for the fiscal year that ended in Feb. 2024 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Econet Wireless Zimbabwe's Net Income for the trailing twelve months (TTM) ended in Feb. 2024 was 63659 (Aug. 2023 ) + -1160137 (Feb. 2024 ) = ZWL-1,096,478 Mil.
Econet Wireless Zimbabwe's Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2024 was 109900 (Aug. 2023 ) + 2405931 (Feb. 2024 ) = ZWL2,515,831 Mil.
Econet Wireless Zimbabwe's Cash Flow from Investing for the trailing twelve months (TTM) ended in Feb. 2024 was -119898 (Aug. 2023 ) + -2337036 (Feb. 2024 ) = ZWL-2,456,934 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.
Econet Wireless Zimbabwe (XZIM:ECO.ZW) 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 Feb. 2024, Econet Wireless Zimbabwe has a Sloan Ratio of -9.52%, indicating the company is in the safe zone and there is no funny business with accruals.
Econet Wireless Zimbabwe Sloan Ratio % Related Terms
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Econet Wireless Zimbabwe (XZIM:ECO.ZW) Business Description
Econet Wireless Zimbabwe Ltd is a holding company. It operates in the following segments: Cellular Network Operations, which provides cellular network services Investments & Administrations, which is the investment vehicle. The Cellular Network Operations generate maximum revenue for the company. Geographically the company offers its services only in the Zimbabwe region.
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