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.
Verbund AG's Sloan Ratio for the quarter that ended in Dec. 2023 was -7.00%.
As of Dec. 2023, Verbund AG has a Sloan Ratio of -7.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Verbund AG Sloan Ratio % Historical Data
The historical data trend for Verbund 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 Verbund AG's Sloan Ratio %
For the Utilities - Renewable subindustry, Verbund 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.
Verbund AG's Sloan Ratio % Distribution in the Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Verbund AG's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Verbund AG's Sloan Ratio % falls into.
Verbund 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.
Verbund AG's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Verbund AG's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 566.381 (Mar. 2023 ) + 821.56 (Jun. 2023 ) + 740.021 (Sep. 2023 ) + 311.39 (Dec. 2023 ) = $2,439 Mil.
Verbund AG's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 1460.064 (Mar. 2023 ) + 1659.805 (Jun. 2023 ) + 1342.263 (Sep. 2023 ) + 1013.707 (Dec. 2023 ) = $5,476 Mil.
Verbund AG's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -227.73 (Mar. 2023 ) + -240.195 (Jun. 2023 ) + -757.524 (Sep. 2023 ) + -323.66 (Dec. 2023 ) = $-1,549 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.
Verbund AG (OTCPK:OEZVY) 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, Verbund AG has a Sloan Ratio of -7.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Verbund AG Sloan Ratio % Related Terms
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Founded in 1947 through a nationalization act, Verbund is the leading power producer in Austria. The Austrian state owns 51% of its capital. Hydro accounts for more than 90% of the total power output. Hydro power is generated from reservoirs and pumped storage plants in the Austrian Alps, and run-of-river plants in Austria and southern Germany. Total hydro capacity amounts to 8.4 GW. Verbund also owns the Austrian electricity grid through its fully owned subsidiary AP. In 2021, the firm acquired 51% of Gas Connect Austria, a gas transmission and distribution system operator. The group also owns one CCGT and is involved in trading and development of wind and solar capacity.
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