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.
Hindalco Industries's Sloan Ratio for the quarter that ended in Mar. 2024 was 0.00%.
As of Mar. 2024, Hindalco Industries has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Hindalco Industries Sloan Ratio % Historical Data
The historical data trend for Hindalco Industries'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 Hindalco Industries's Sloan Ratio %
For the Aluminum subindustry, Hindalco Industries'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.
Hindalco Industries's Sloan Ratio % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Hindalco Industries's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Hindalco Industries's Sloan Ratio % falls into.
Hindalco Industries 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.
Hindalco Industries's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
Hindalco Industries's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 298.449 (Jun. 2023 ) + 264.355 (Sep. 2023 ) + 279.987 (Dec. 2023 ) + 382.311 (Mar. 2024 ) = $1,225 Mil.
Hindalco Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) + 0 (Mar. 2024 ) = $0 Mil.
Hindalco Industries's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) + 0 (Mar. 2024 ) = $0 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.
Hindalco Industries (LUX:HINDA) 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, Hindalco Industries has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Hindalco Industries Sloan Ratio % Related Terms
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Hindalco Industries (LUX:HINDA) Business Description
Hindalco Industries Ltd extracts raw materials and produces and sells industrial metals in the below segments: Copper, Aluminum Upstream and Aluminium Downstream, Novelis, and all other Segment. The Copper segment purchases raw materials and produces continuous cast copper rods, copper cathodes, sulphuric acid, gold, and silver. The firm hedges its copper and other precious metals costs through futures contracts in an attempt to match commodity price changes between the time it purchases the raw materials and sells the finished products. The Aluminum segment mines bauxite and produces hydrate and alumina, aluminum, and aluminum-based products. The majority of Hindalco's revenue comes from India. The firm is also expanding internationally with sales and operations worldwide.
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