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.
Tomra Systems ASA's Sloan Ratio for the quarter that ended in Dec. 2023 was 1.62%.
As of Dec. 2023, Tomra Systems ASA has a Sloan Ratio of 1.62%, indicating the company is in the safe zone and there is no funny business with accruals.
Tomra Systems ASA Sloan Ratio % Historical Data
The historical data trend for Tomra Systems ASA'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 Tomra Systems ASA's Sloan Ratio %
For the Waste Management subindustry, Tomra Systems ASA'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.
Tomra Systems ASA's Sloan Ratio % Distribution in the Waste Management Industry
For the Waste Management industry and Industrials sector, Tomra Systems ASA's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Tomra Systems ASA's Sloan Ratio % falls into.
Tomra Systems ASA 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.
Tomra Systems ASA's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Tomra Systems ASA's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 11.735 (Mar. 2023 ) + 31.205 (Jun. 2023 ) + 16.597 (Sep. 2023 ) + 8.541 (Dec. 2023 ) = $68 Mil.
Tomra Systems ASA's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 48.28 (Mar. 2023 ) + 3.779 (Jun. 2023 ) + -26.108 (Sep. 2023 ) + 124.737 (Dec. 2023 ) = $151 Mil.
Tomra Systems ASA's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -20.432 (Mar. 2023 ) + -22.072 (Jun. 2023 ) + -17.623 (Sep. 2023 ) + -47.851 (Dec. 2023 ) = $-108 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.
Tomra Systems ASA (OTCPK:TMRAF) 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, Tomra Systems ASA has a Sloan Ratio of 1.62%, indicating the company is in the safe zone and there is no funny business with accruals.
Tomra Systems ASA Sloan Ratio % Related Terms
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Tomra Systems ASA (Tomra Systems ASA) Business Description
Tomra Systems ASA provides sorting and recycling solutions to better equip customers for handling waste. It operates two primary business segments: collection solutions (a majority of revenue) and sorting solutions. The company produces, sells, and services automated recycling systems, including data administration systems that monitor the volume of collected materials. It manufactures reverse vending machines to collect empty beverage containers. The empty beverage containers are gathered and processed into reusable molds. Tomra services the machines and provides replacement parts to ensure optimal performance. Food sorting solutions inspect individual pieces and stop resources from going to waste. The majority of revenue comes from customers in Europe, North America and Rest of World.
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