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.
Agnico Eagle Mines's Sloan Ratio for the quarter that ended in Dec. 2023 was 7.32%.
As of Dec. 2023, Agnico Eagle Mines has a Sloan Ratio of 7.32%, indicating the company is in the safe zone and there is no funny business with accruals.
Agnico Eagle Mines Sloan Ratio % Historical Data
The historical data trend for Agnico Eagle Mines'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 Agnico Eagle Mines's Sloan Ratio %
For the Gold subindustry, Agnico Eagle Mines'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.
Agnico Eagle Mines's Sloan Ratio % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Agnico Eagle Mines's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Agnico Eagle Mines's Sloan Ratio % falls into.
Agnico Eagle Mines 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.
Agnico Eagle Mines's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Agnico Eagle Mines's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 1816.891 (Mar. 2023 ) + 326.821 (Jun. 2023 ) + 178.606 (Sep. 2023 ) + -381.011 (Dec. 2023 ) = $1,941 Mil.
Agnico Eagle Mines's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 649.613 (Mar. 2023 ) + 722 (Jun. 2023 ) + 502.088 (Sep. 2023 ) + 727.861 (Dec. 2023 ) = $2,602 Mil.
Agnico Eagle Mines's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -1398.745 (Mar. 2023 ) + -450.202 (Jun. 2023 ) + -435.666 (Sep. 2023 ) + -476.17 (Dec. 2023 ) = $-2,761 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.
Agnico Eagle Mines (NYSE:AEM) 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, Agnico Eagle Mines has a Sloan Ratio of 7.32%, indicating the company is in the safe zone and there is no funny business with accruals.
Agnico Eagle Mines Sloan Ratio % Related Terms
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Agnico Eagle Mines (Agnico Eagle Mines) Business Description
Agnico Eagle is a gold miner with mines in Canada, Mexico, Finland, and Australia. Agnico operated just one mine, LaRonde, as recently as 2008 before bringing its other mines online in rapid succession in the following years. It merged with Kirkland Lake Gold in 2022, acquiring the Detour Lake and Macassa mines in Canada along with the high-grade, low-cost Fosterville mine in Australia. It produced more than 3.1 million gold ounces in 2022 and had about 15 years of gold reserves at end 2022. Agnico Eagle is focused on increasing gold production in lower-risk jurisdictions and bought the remaining 50% of its Canadian Malartic mine along with the Wasamac project and other assets from Yamana Gold in 2023.
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