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.
Lorenzo International's Sloan Ratio for the quarter that ended in Dec. 2023 was -17.19%.
As of Dec. 2023, Lorenzo International has a Sloan Ratio of -17.19%, indicating there is a warning stage of accrual build up.
Lorenzo International Sloan Ratio % Historical Data
The historical data trend for Lorenzo International'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 Lorenzo International's Sloan Ratio %
For the Furnishings, Fixtures & Appliances subindustry, Lorenzo International'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.
Lorenzo International's Sloan Ratio % Distribution in the Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Lorenzo International's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Lorenzo International's Sloan Ratio % falls into.
Lorenzo International 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.
Lorenzo International's Sloan Ratio for the fiscal year that ended in Mar. 2020 is calculated as
Lorenzo International's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 0.042 (Dec. 2022 ) + -0.377 (Jun. 2023 ) + -0.258 (Sep. 2023 ) + 0.027 (Dec. 2023 ) = S$-0.57 Mil.
Lorenzo International's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 0.545 (Dec. 2022 ) + -0.031 (Jun. 2023 ) + 0.268 (Sep. 2023 ) + 0.62 (Dec. 2023 ) = S$1.40 Mil.
Lorenzo International's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 2.044 (Dec. 2022 ) + -0.004 (Jun. 2023 ) + -0.004 (Sep. 2023 ) + -0.006 (Dec. 2023 ) = S$2.03 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.
Lorenzo International (SGX:5IE) 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, Lorenzo International has a Sloan Ratio of -17.19%, indicating there is a warning stage of accrual build up.
Lorenzo International Sloan Ratio % Related Terms
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Lorenzo International (SGX:5IE) Business Description
Lorenzo International Ltd is a branded lifestyle furniture retailer. The company sells its products under the Lorenzo brand name grouped under two main collections - Dante for classic leather sofas and Enzo for wood-based products. The group is organized into the following reportable operating segments: Furniture, and Building Materials. The company distributes its products across Singapore, Malaysia, Taiwan, China, and other regions. The company generates maximum revenue from Malaysia followed by Taiwan and Singapore.
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