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.
Vetropack Holding AG's Sloan Ratio for the quarter that ended in Dec. 2023 was 17.99%.
As of Dec. 2023, Vetropack Holding AG has a Sloan Ratio of 17.99%, indicating there is a warning stage of accrual build up.
Vetropack Holding AG Sloan Ratio % Historical Data
The historical data trend for Vetropack Holding AG'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 Vetropack Holding AG's Sloan Ratio %
For the Packaging & Containers subindustry, Vetropack Holding AG'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.
Vetropack Holding AG's Sloan Ratio % Distribution in the Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Vetropack Holding AG's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Vetropack Holding AG's Sloan Ratio % falls into.
Vetropack Holding AG 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.
Vetropack Holding AG'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.
Vetropack Holding AG's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 50.7 (Jun. 2023 ) + 12.6 (Dec. 2023 ) = CHF63.3 Mil.
Vetropack Holding AG's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 6.3 (Jun. 2023 ) + 66.1 (Dec. 2023 ) = CHF72.4 Mil.
Vetropack Holding AG's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -127.8 (Jun. 2023 ) + -108.7 (Dec. 2023 ) = CHF-236.5 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.
Vetropack Holding AG (XSWX:VETN) 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, Vetropack Holding AG has a Sloan Ratio of 17.99%, indicating there is a warning stage of accrual build up.
Vetropack Holding AG Sloan Ratio % Related Terms
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Vetropack Holding AG (XSWX:VETN) Business Description
Vetropack Holding AG is a glass packaging manufacturer serving the food and beverage industry. The company offers services including package design, production and just-in-time delivery to consulting and support services in the area of packaging analysis, bottling, conditioning, closure technology, decorative refinement, and labelling. It has its production and distribution facilities in Switzerland, Austria, the Czech Republic, Slovakia, Croatia, Ukraine, and Italy. The segment reporting used at the top management level for corporate management has just one segment (Glass packaging). The secondary segment Speciality glass comprises only trade revenue in Switzerland.
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