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.
As of Dec. 2023, Jardine Cycle & Carriage has a Sloan Ratio of 5.50%, indicating the company is in the safe zone and there is no funny business with accruals.
Jardine Cycle & Carriage Sloan Ratio % Historical Data
* 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 Jardine Cycle & Carriage's Sloan Ratio %
For the Conglomerates subindustry, Jardine Cycle & Carriage'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.
Jardine Cycle & Carriage's Sloan Ratio % Distribution in the Conglomerates Industry
For the Conglomerates industry and Industrials sector, Jardine Cycle & Carriage's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Jardine Cycle & Carriage's Sloan Ratio % falls into.
Jardine Cycle & Carriage 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.
Jardine Cycle & Carriage's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Jardine Cycle & Carriage's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 648.3 (Jun. 2023 ) + 567.1 (Dec. 2023 ) = $1,215 Mil.
Jardine Cycle & Carriage's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 1798 (Jun. 2023 ) + 673.2 (Dec. 2023 ) = $2,471 Mil.
Jardine Cycle & Carriage's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -668.5 (Jun. 2023 ) + -2370.4 (Dec. 2023 ) = $-3,039 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.
Jardine Cycle & Carriage (OTCPK:JCYGY) 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, Jardine Cycle & Carriage has a Sloan Ratio of 5.50%, indicating the company is in the safe zone and there is no funny business with accruals.
Jardine Cycle & Carriage Sloan Ratio % Related Terms
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Jardine Cycle & Carriage (Jardine Cycle & Carriage) Business Description
Jardine Cycle & Carriage Ltd is a conglomerate focused on investments in the manufacture and distribution of motor vehicles in Southeast Asia. The company operates through three segments: Astra, direct motor interests, and other interests. The Astra segment includes the company's controlling interest in Astra International, an automotive group in Southeast Asia. Direct motor interests include automotive operations in Singapore, Malaysia, Myanmar, Indonesia, and Vietnam. The Other Strategic interests segment includes Southeast Asia investments in Siam City Cement and Refrigeration Electrical Engineering Corporation.
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