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.
Toho Zinc Co's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.00%.
Warning Sign:
When sloan ratio (-39.23)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2023, Toho Zinc Co has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Toho Zinc Co Sloan Ratio % Historical Data
The historical data trend for Toho Zinc Co'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 Toho Zinc Co's Sloan Ratio %
For the Other Industrial Metals & Mining subindustry, Toho Zinc Co'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.
Toho Zinc Co's Sloan Ratio % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Toho Zinc Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Toho Zinc Co's Sloan Ratio % falls into.
Toho Zinc Co 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.
Toho Zinc Co's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
Toho Zinc Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -25.444 (Mar. 2023 ) + -20.063 (Jun. 2023 ) + -154.763 (Sep. 2023 ) + -31.351 (Dec. 2023 ) = $-231.6 Mil.
Toho Zinc Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 0 (Mar. 2023 ) + 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) = $0.0 Mil.
Toho Zinc Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 0 (Mar. 2023 ) + 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) = $0.0 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.
Toho Zinc Co (OTCPK:TOHZF) 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, Toho Zinc Co has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Toho Zinc Co Sloan Ratio % Related Terms
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Toho Zinc Co Ltd is engaged in smelting and refining of non-ferrous metals and supplier of zinc products. Its products portfolio consists of zinc powder, Cadmium Oxide, Sulfuric Acid, Electrolytic Zinc, and Zinc Alloys for Die Casting. The company's segments include Smelting, Mineral resources, Electronic components, and Environment and recycling. The majority of the company's revenue is derived from sale and production of zinc and lead products, electric silver and sulfuric acid. The company operates in Japan, Asia, and Oceania.
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