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.
Hudbay Minerals's Sloan Ratio for the quarter that ended in Dec. 2023 was -2.61%.
As of Dec. 2023, Hudbay Minerals has a Sloan Ratio of -2.61%, indicating the company is in the safe zone and there is no funny business with accruals.
Hudbay Minerals Sloan Ratio % Historical Data
The historical data trend for Hudbay Minerals'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 Hudbay Minerals's Sloan Ratio %
For the Copper subindustry, Hudbay Minerals'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.
Hudbay Minerals's Sloan Ratio % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Hudbay Minerals's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Hudbay Minerals's Sloan Ratio % falls into.
Hudbay Minerals 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.
Hudbay Minerals's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Hudbay Minerals's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 5.457 (Mar. 2023 ) + -14.932 (Jun. 2023 ) + 45.125 (Sep. 2023 ) + 30.717 (Dec. 2023 ) = $66 Mil.
Hudbay Minerals's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 71.279 (Mar. 2023 ) + 24.557 (Jun. 2023 ) + 151.948 (Sep. 2023 ) + 229.066 (Dec. 2023 ) = $477 Mil.
Hudbay Minerals's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -65.076 (Mar. 2023 ) + -55.921 (Jun. 2023 ) + -68.247 (Sep. 2023 ) + -82.538 (Dec. 2023 ) = $-272 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.
Hudbay Minerals (NYSE:HBM) 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, Hudbay Minerals has a Sloan Ratio of -2.61%, indicating the company is in the safe zone and there is no funny business with accruals.
Hudbay Minerals Sloan Ratio % Related Terms
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Hudbay Minerals (Hudbay Minerals) Business Description
Hudbay Minerals Inc is a Canadian mining company with its operations, property developments, and exploration activities across the United States. The major mines that Hudbay operates are located in Manitoba, Canada, Arizona, United States; and Peru. The company is principally focused on the discovery, production, and marketing of base and precious metals. Hudbay produces copper concentrate, which contains copper, gold, and silver, as well as zinc metal. More than half the company's revenue is attributable to the copper business. The company sells copper concentrates to smelters across Asia, America, and Europe, and sells Zinc metal, the next biggest source of revenue, to industrial customers across North America.
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