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.
Eurofins Scientific SE's Sloan Ratio for the quarter that ended in Dec. 2023 was -0.25%.
As of Dec. 2023, Eurofins Scientific SE has a Sloan Ratio of -0.25%, indicating the company is in the safe zone and there is no funny business with accruals.
Eurofins Scientific SE 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 Eurofins Scientific SE's Sloan Ratio %
For the Diagnostics & Research subindustry, Eurofins Scientific SE'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.
Eurofins Scientific SE's Sloan Ratio % Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Eurofins Scientific SE's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Eurofins Scientific SE's Sloan Ratio % falls into.
Eurofins Scientific SE 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.
Eurofins Scientific SE'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.
Eurofins Scientific SE's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 164.139 (Jun. 2023 ) + 173.064 (Dec. 2023 ) = $337 Mil.
Eurofins Scientific SE's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 360.888 (Jun. 2023 ) + 746.783 (Dec. 2023 ) = $1,108 Mil.
Eurofins Scientific SE's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -356.013 (Jun. 2023 ) + -384.406 (Dec. 2023 ) = $-740 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.
Eurofins Scientific SE (OTCPK:ERFSF) 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, Eurofins Scientific SE has a Sloan Ratio of -0.25%, indicating the company is in the safe zone and there is no funny business with accruals.
Eurofins Scientific SE Sloan Ratio % Related Terms
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Eurofins Scientific SE (Eurofins Scientific SE) Business Description
Eurofins, headquartered in Luxembourg, is a decentralized network of life sciences companies that provide various analytical tests and laboratory services. These include tests to evaluate the safety, identity, composition, authenticity, purity, origin, and traceability of various biological substances and products. Eurofins operates over 900 laboratories in 61 countries. Its revenue from Europe, North America, and the Rest of the World contribute approximately 50%, 40%, and 10% of total revenue respectively. Its main business activities are food and environmental testing, biopharmaceutical services, diagnostic services and products, and consumer and technology products testing, which contribute approximately 40%, 30%, 20%, and 10% respectively.
Eurofins Scientific SE (Eurofins Scientific SE) Headlines
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