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 Mar. 2024, American Battery Materials has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
American Battery Materials 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 American Battery Materials's Sloan Ratio %
For the Other Industrial Metals & Mining subindustry, American Battery Materials'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.
American Battery Materials's Sloan Ratio % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, American Battery Materials's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where American Battery Materials's Sloan Ratio % falls into.
American Battery Materials 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.
American Battery Materials's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -1.131 (Jun. 2023 ) + -0.943 (Sep. 2023 ) + 0.078 (Dec. 2023 ) + -0.864 (Mar. 2024 ) = $-2.86 Mil.
American Battery Materials's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -1.174 (Jun. 2023 ) + -0.42 (Sep. 2023 ) + -0.367 (Dec. 2023 ) + -0.086 (Mar. 2024 ) = $-2.05 Mil.
American Battery Materials's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -0.106 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) + 0 (Mar. 2024 ) = $-0.11 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.
American Battery Materials (OTCPK:BLTH) 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 Mar. 2024, American Battery Materials has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
American Battery Materials Sloan Ratio % Related Terms
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American Battery Materials (American Battery Materials) Business Description
American Battery Materials Inc is a US based renewable energy company focused on the extraction, refinement and distribution of technical minerals . This company focused on direct lithium extraction as well as other minerals for refining, processing and distribution to support the country's urgent critical minerals need to support long-term energy transition and the electrification of the U.S. domestic and global economy.
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