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.
Benesse Holdings's Sloan Ratio for the quarter that ended in Mar. 2024 was -7.10%.
As of Mar. 2024, Benesse Holdings has a Sloan Ratio of -7.10%, indicating the company is in the safe zone and there is no funny business with accruals.
Benesse Holdings Sloan Ratio % Historical Data
The historical data trend for Benesse 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 Benesse Holdings's Sloan Ratio %
For the Education & Training Services subindustry, Benesse 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.
Benesse Holdings's Sloan Ratio % Distribution in the Education Industry
For the Education industry and Consumer Defensive sector, Benesse Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Benesse Holdings's Sloan Ratio % falls into.
Benesse 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.
Benesse Holdings's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
Benesse Holdings's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -11.425 (Jun. 2023 ) + 48.957 (Sep. 2023 ) + 30.997 (Dec. 2023 ) + -24.323 (Mar. 2024 ) = $44 Mil.
Benesse Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 221.975 (Jun. 2023 ) + 17.342 (Sep. 2023 ) + -50.986 (Dec. 2023 ) + -3.725 (Mar. 2024 ) = $185 Mil.
Benesse Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -37.274 (Jun. 2023 ) + -31.486 (Sep. 2023 ) + -9.821 (Dec. 2023 ) + 188.748 (Mar. 2024 ) = $110 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.
Benesse Holdings (OTCPK:BSEFY) 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 Mar. 2024, Benesse Holdings has a Sloan Ratio of -7.10%, indicating the company is in the safe zone and there is no funny business with accruals.
Benesse Holdings Sloan Ratio % Related Terms
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Benesse Holdings (Benesse Holdings) Business Description
Benesse Holdings Inc is a Japanese holding company that operates educational facilities, nursing homes, and child care services. The company's main segment operates elementary, junior high, and high schools across Japan. The company also provides course materials and exam preparation materials. In addition, Benesse Holdings operates branded preschools as well as nursing and elderly care facilities. Enrollment tuition in elementary and junior high schools provides the largest source of revenue for the company. Benesse Holdings also operates educational services in China, Taiwan, South Korea, and the United States.
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