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.
TRC Synergy Bhd's Sloan Ratio for the quarter that ended in Mar. 2024 was -4.07%.
As of Mar. 2024, TRC Synergy Bhd has a Sloan Ratio of -4.07%, indicating the company is in the safe zone and there is no funny business with accruals.
TRC Synergy Bhd Sloan Ratio % Historical Data
The historical data trend for TRC Synergy Bhd'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 TRC Synergy Bhd's Sloan Ratio %
For the Engineering & Construction subindustry, TRC Synergy 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.
TRC Synergy Bhd's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, TRC Synergy Bhd's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where TRC Synergy Bhd's Sloan Ratio % falls into.
TRC Synergy 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.
TRC Synergy Bhd's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
TRC Synergy Bhd's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 9.882 (Jun. 2023 ) + 5.879 (Sep. 2023 ) + 7 (Dec. 2023 ) + 0.147 (Mar. 2024 ) = RM22.91 Mil.
TRC Synergy Bhd's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 84.078 (Jun. 2023 ) + 4.92 (Sep. 2023 ) + -12.443 (Dec. 2023 ) + -23.379 (Mar. 2024 ) = RM53.18 Mil.
TRC Synergy Bhd's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 2.096 (Jun. 2023 ) + 3.728 (Sep. 2023 ) + 4.16 (Dec. 2023 ) + -1.699 (Mar. 2024 ) = RM8.29 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.
TRC Synergy Bhd (XKLS:5054WA) 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 Mar. 2024, TRC Synergy Bhd has a Sloan Ratio of -4.07%, indicating the company is in the safe zone and there is no funny business with accruals.
TRC Synergy Bhd Sloan Ratio % Related Terms
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TRC Synergy Bhd (XKLS:5054WA) Business Description
TRC Synergy Bhd is an investment holding company. The firm through its subsidiaries engages in construction and property development. The company provides service to general contractors for supplying labor and provision of corporate, administrative, and financial support to its subsidiaries. The construction activity division undertakes construction contracts, sales of construction-related materials, rendering of construction-related services, and others. For property development, the division also ventures into the development of residential properties. The construction activity business contributes the majority of the group profit and the remaining from the property development division.
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