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.
Tronox Holdings's Sloan Ratio for the quarter that ended in Dec. 2023 was -3.99%.
As of Dec. 2023, Tronox Holdings has a Sloan Ratio of -3.99%, indicating the company is in the safe zone and there is no funny business with accruals.
Tronox Holdings Sloan Ratio % Historical Data
The historical data trend for Tronox Holdings'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 Tronox Holdings's Sloan Ratio %
For the Chemicals subindustry, Tronox Holdings'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.
Tronox Holdings's Sloan Ratio % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Tronox Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Tronox Holdings's Sloan Ratio % falls into.
Tronox Holdings 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.
Tronox Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Tronox Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 23 (Mar. 2023 ) + -269 (Jun. 2023 ) + -14 (Sep. 2023 ) + -56 (Dec. 2023 ) = $-316 Mil.
Tronox Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -79 (Mar. 2023 ) + 136 (Jun. 2023 ) + 17 (Sep. 2023 ) + 110 (Dec. 2023 ) = $184 Mil.
Tronox Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -91 (Mar. 2023 ) + -54 (Jun. 2023 ) + -54 (Sep. 2023 ) + -56 (Dec. 2023 ) = $-255 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.
Tronox Holdings (NYSE:TROX) 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, Tronox Holdings has a Sloan Ratio of -3.99%, indicating the company is in the safe zone and there is no funny business with accruals.
Tronox Holdings Sloan Ratio % Related Terms
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Tronox Holdings (Tronox Holdings) Business Description
Tronox Holdings PLC is a vertically integrated manufacturer of TiO2 pigment. It operates titanium-bearing mineral sand mines and beneficiation and smelting operations in Australia & South Africa to produce feedstock materials that can be processed into TiO2 for pigment, high-purity titanium chemicals, including titanium tetrachloride, and ultrafine TiO2 used in certain specialty applications. TiO2 and titanium feedstock, are used to produce paints and coatings, as well as plastics, paper, and printing ink. It has three pigment production facilities in the United States, the Netherlands, and Western Australia and three mining operations in Western Australia and South Africa. North America, Europe, the Middle East, and Africa, and Asia-Pacific regions contribute the vast majority of revenue.
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