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.
Univar Solutions's Sloan Ratio for the quarter that ended in Jun. 2023 was -3.35%.
As of Jun. 2023, Univar Solutions has a Sloan Ratio of -3.35%, indicating the company is in the safe zone and there is no funny business with accruals.
Univar Solutions Sloan Ratio % Historical Data
The historical data trend for Univar Solutions'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 Univar Solutions's Sloan Ratio %
For the Chemicals subindustry, Univar Solutions'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.
Univar Solutions's Sloan Ratio % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Univar Solutions's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Univar Solutions's Sloan Ratio % falls into.
Univar Solutions 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.
Univar Solutions's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
Univar Solutions's Net Income for the trailing twelve months (TTM) ended in Jun. 2023 was 130 (Sep. 2022 ) + 71.6 (Dec. 2022 ) + 83.1 (Mar. 2023 ) + 87.8 (Jun. 2023 ) = $373 Mil.
Univar Solutions's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2023 was 257 (Sep. 2022 ) + 375.6 (Dec. 2022 ) + -2.9 (Mar. 2023 ) + 274.2 (Jun. 2023 ) = $904 Mil.
Univar Solutions's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2023 was -50.2 (Sep. 2022 ) + -46.1 (Dec. 2022 ) + -51.4 (Mar. 2023 ) + -140.4 (Jun. 2023 ) = $-288 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.
Univar Solutions (NYSE:UNVR) 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 Jun. 2023, Univar Solutions has a Sloan Ratio of -3.35%, indicating the company is in the safe zone and there is no funny business with accruals.
Univar Solutions Sloan Ratio % Related Terms
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Univar Solutions (Univar Solutions) Business Description
Univar Solutions Inc is distributor of commodity and specialty chemicals and ingredients, as well as a provider of value-added services, to customers across a wide range of diverse industries.. The company sells chemicals to a variety of end-users including customers in the food ingredients, beauty and personal care, pharmaceutical ingredients & finished products, CASE, chemical manufacturing, homecare and industrial cleaning and mining. The company organizes itself into four segments based on geography: the United States; Canada; Europe and the Middle East and Africa; and the rest of the world. The majority of revenue comes from the United States.
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