Sloan Ratio is defined as:
Accruals
(/) Average Total Assets
(=) Sloan Ratio
where Accruals = Net Income - Cash from Operations - Cash from Investing
Sloan Ratio for VERBUND is calculated as follows:
(+) Net Income [ 1.875 B ]
(-) Cash Flow From Operations [ -3.249 B ]
(-) Cash Flow From Investing [ 1.166 B ]
(=) Accruals [ -206.9 M ]
Accrual [ -206.9 M ]
(/) Average Assets over Period [ 19.102 B ]
(=) Sloan Ratio [ −1.1% ]
A Sloan Ratio between -10% and 10% is generally considered safe. If the Sloan ratio exceeds 25% or is less than -25% for consecutive years may be cause for concern. VERBUND has a Sloan ratio in the Safe Zone.
Click the link below to download a spreadsheet with an example Sloan Ratio calculation for Verbund AG Kat. A below: