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.
NTT DOCOMO's Sloan Ratio for the quarter that ended in Sep. 2020 was -0.63%.
As of Sep. 2020, NTT DOCOMO has a Sloan Ratio of -0.63%, indicating the company is in the safe zone and there is no funny business with accruals.
NTT DOCOMO Sloan Ratio % Historical Data
The historical data trend for NTT DOCOMO'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 NTT DOCOMO's Sloan Ratio %
For the Telecom Services subindustry, NTT DOCOMO'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.
NTT DOCOMO's Sloan Ratio % Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, NTT DOCOMO's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where NTT DOCOMO's Sloan Ratio % falls into.
NTT DOCOMO 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.
NTT DOCOMO's Sloan Ratio for the fiscal year that ended in Mar. 2020 is calculated as
NTT DOCOMO's Net Income for the trailing twelve months (TTM) ended in Sep. 2020 was 1557.841 (Dec. 2019 ) + 517.567 (Mar. 2020 ) + 1819.7 (Jun. 2020 ) + 1856.434 (Sep. 2020 ) = $5,752 Mil.
NTT DOCOMO's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2020 was 1580.71 (Dec. 2019 ) + 4797.018 (Mar. 2020 ) + 1629.828 (Jun. 2020 ) + 4375.844 (Sep. 2020 ) = $12,383 Mil.
NTT DOCOMO's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2020 was -1039.477 (Dec. 2019 ) + -1002.421 (Mar. 2020 ) + -2131.538 (Jun. 2020 ) + -2000.208 (Sep. 2020 ) = $-6,174 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.
NTT DOCOMO (OTCPK:NTDMF) 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 Sep. 2020, NTT DOCOMO has a Sloan Ratio of -0.63%, indicating the company is in the safe zone and there is no funny business with accruals.
NTT DOCOMO Sloan Ratio % Related Terms
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NTT DoCoMo is Japan's largest wireless telephone operator. It has 78 million subscribers, leading to its market share of approximately 44%. The firm has been a technological leader, introducing wireless Internet access through its i-mode service in 1999, along with the ability to use a handset like a credit card. NTT DoCoMo also owns minority stakes in Philippine Long Distance Telephone, Hutchison Telecom Hong Kong Holdings, and other smaller phone companies. The firm's objective is to have the highest-quality network and customer service in Japan.
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