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 Dec. 2023, Cleanaway Waste Management has a Sloan Ratio of -0.02%, indicating the company is in the safe zone and there is no funny business with accruals.
Cleanaway Waste Management 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 Cleanaway Waste Management's Sloan Ratio %
For the Waste Management subindustry, Cleanaway Waste Management'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.
Cleanaway Waste Management's Sloan Ratio % Distribution in the Waste Management Industry
For the Waste Management industry and Industrials sector, Cleanaway Waste Management's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Cleanaway Waste Management's Sloan Ratio % falls into.
Cleanaway Waste Management 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.
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Cleanaway Waste Management's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -16.292 (Jun. 2023 ) + 44.929 (Dec. 2023 ) = €29 Mil.
Cleanaway Waste Management's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 172.459 (Jun. 2023 ) + 140.926 (Dec. 2023 ) = €313 Mil.
Cleanaway Waste Management's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -126.123 (Jun. 2023 ) + -157.682 (Dec. 2023 ) = €-284 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.
Cleanaway Waste Management (FRA:TG9) 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, Cleanaway Waste Management has a Sloan Ratio of -0.02%, indicating the company is in the safe zone and there is no funny business with accruals.
Cleanaway Waste Management Sloan Ratio % Related Terms
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Cleanaway Waste Management (FRA:TG9) Business Description
Cleanaway Waste Management is Australia's largest waste management business with a national footprint spanning collection, midstream waste processing, treatment, and valorization, and downstream waste disposal. Cleanaway is active in municipal and commercial and industrial, or C&I, waste stream segments and in nonhazardous and hazardous liquid waste and medical waste streams following the acquisition of Toxfree in fiscal 2018. While Cleanaway is allocating greater capital to midstream waste processing and treatment, earnings remain skewed toward waste collection. Cleanaway is particularly strong in C&I and municipal waste collection with strong market share in all large Australian metro waste collection market.
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