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, Keck Seng (Malaysia) Bhd has a Sloan Ratio of 4.45%, indicating the company is in the safe zone and there is no funny business with accruals.
Keck Seng (Malaysia) Bhd 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 Keck Seng (Malaysia) Bhd's Sloan Ratio %
For the Farm Products subindustry, Keck Seng (Malaysia) Bhd'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.
Keck Seng (Malaysia) Bhd's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Keck Seng (Malaysia) Bhd's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Keck Seng (Malaysia) Bhd's Sloan Ratio % falls into.
Keck Seng (Malaysia) Bhd 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.
Keck Seng (Malaysia) Bhd's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Keck Seng (Malaysia) Bhd's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 35.097 (Mar. 2023 ) + 75.013 (Jun. 2023 ) + 36.05 (Sep. 2023 ) + 94.542 (Dec. 2023 ) = RM241 Mil.
Keck Seng (Malaysia) Bhd's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 34.953 (Mar. 2023 ) + 20.589 (Jun. 2023 ) + 37.768 (Sep. 2023 ) + 38.753 (Dec. 2023 ) = RM132 Mil.
Keck Seng (Malaysia) Bhd's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -86.297 (Mar. 2023 ) + 37.99 (Jun. 2023 ) + -10.509 (Sep. 2023 ) + 31.868 (Dec. 2023 ) = RM-27 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.
Keck Seng (Malaysia) Bhd (XKLS:3476) 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, Keck Seng (Malaysia) Bhd has a Sloan Ratio of 4.45%, indicating the company is in the safe zone and there is no funny business with accruals.
Keck Seng (Malaysia) Bhd Sloan Ratio % Related Terms
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Keck Seng (Malaysia) Bhd (XKLS:3476) Business Description
Keck Seng (Malaysia) Bhd is a Malaysia based company engaged in the business of palm oil cultivation and manufacturing. In addition, it is also involved in the business activities of property development and investment, and hotels and resorts ownership. The operating segments of the company are Manufacturing, Hotels and resort, Property, and Plantations. It generates the majority of the revenue from the Manufacturing segment which relates to the processing and marketing of refined palm oil products. The group's operations are carried out principally in Malaysia, Singapore, Hong Kong, Canada, and the United States of America of which key revenue is derived from Malaysia.
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