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.
Viva Energy Group's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.21%.
As of Dec. 2023, Viva Energy Group has a Sloan Ratio of 0.21%, indicating the company is in the safe zone and there is no funny business with accruals.
Viva Energy Group Sloan Ratio % Historical Data
The historical data trend for Viva Energy Group'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 Viva Energy Group's Sloan Ratio %
For the Oil & Gas Refining & Marketing subindustry, Viva Energy Group'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.
Viva Energy Group's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Viva Energy Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Viva Energy Group's Sloan Ratio % falls into.
Viva Energy Group 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.
Viva Energy Group'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.
Viva Energy Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -77.5 (Jun. 2023 ) + 81.3 (Dec. 2023 ) = A$4 Mil.
Viva Energy Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 279.3 (Jun. 2023 ) + 399.7 (Dec. 2023 ) = A$679 Mil.
Viva Energy Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -438.7 (Jun. 2023 ) + -255.6 (Dec. 2023 ) = A$-694 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.
Viva Energy Group (ASX:VEA) 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, Viva Energy Group has a Sloan Ratio of 0.21%, indicating the company is in the safe zone and there is no funny business with accruals.
Viva Energy Group Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Viva Energy Group's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Viva is Australia's second-largest vertically integrated refined transport fuel supplier. We rate Viva as the second-most-significant pipeline owner, and at approximately 1,155 locations, Viva supplies the third-largest number of retail sites in Australia behind Ampol at approximately 1,985 and BP at 1,400.Vitol bought Shell's Australian downstream operations in 2014, and renamed them Viva Energy. Viva subsequently bought Shell's Australian aviation operations and a 50% investment in Liberty Oil. In 2016, Viva sold (and leased back) a portfolio of its retail sites to Viva Energy REIT and listed Viva Energy REIT on the ASX. It has since sold its entire REIT stake for AUD 734 million.
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