Lotte Chemical Titan Holdings Bhd (XKLS:5284) Sloan Ratio % : 25.83% (As of Mar. 2024)

View and export this data going back to 2017. Start your Free Trial

What is Lotte Chemical Titan Holdings Bhd Sloan Ratio %?

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.

Lotte Chemical Titan Holdings Bhd's Sloan Ratio for the quarter that ended in Mar. 2024 was 25.83%.

Warning Sign:

When sloan ratio (27.36)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.

As of Mar. 2024, Lotte Chemical Titan Holdings Bhd has a Sloan Ratio of 25.83%, indicating earnings are more likely to be made up of accruals.

Lotte Chemical Titan Holdings Bhd Sloan Ratio % Historical Data

The historical data trend for Lotte Chemical Titan Holdings 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.

* Premium members only.

Lotte Chemical Titan Holdings Bhd Sloan Ratio % Chart

Lotte Chemical Titan Holdings Bhd Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Sloan Ratio %

Get a 7-Day Free Trial

6.56

-1.47

0.92

7.03

27.36

Lotte Chemical Titan Holdings Bhd Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Sloan Ratio %	Get a 7-Day Free Trial															10.72	16.91	21.55	27.36	25.83

Competitive Comparison of Lotte Chemical Titan Holdings Bhd's Sloan Ratio %

For the Chemicals subindustry, Lotte Chemical Titan Holdings 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.

Lotte Chemical Titan Holdings Bhd's Sloan Ratio % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Lotte Chemical Titan Holdings Bhd's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Lotte Chemical Titan Holdings Bhd's Sloan Ratio % falls into.

Lotte Chemical Titan Holdings 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.

Lotte Chemical Titan Holdings Bhd's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (A: Dec. 2023 )	-	Cash Flow from Operations (A: Dec. 2023 )
	-	Cash Flow from Investing (A: Dec. 2023 ))	/	Total Assets (A: Dec. 2023 )
	=	(-780.286	-	-545.552
	-	-6561.828)	/	23122.231
	=	27.36%

Lotte Chemical Titan Holdings Bhd's Sloan Ratio for the quarter that ended in Mar. 2024 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Mar. 2024 )
	=	(-733.554	-	-706.688
	-	-6404.143)	/	24687.037
	=	25.83%

Lotte Chemical Titan Holdings Bhd's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -313.472 (Jun. 2023 ) + -55.58 (Sep. 2023 ) + -186.477 (Dec. 2023 ) + -178.025 (Mar. 2024 ) = RM-734 Mil.
Lotte Chemical Titan Holdings Bhd's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -433.615 (Jun. 2023 ) + 50.942 (Sep. 2023 ) + -39.247 (Dec. 2023 ) + -284.768 (Mar. 2024 ) = RM-707 Mil.
Lotte Chemical Titan Holdings Bhd's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -1340.766 (Jun. 2023 ) + -1734.3 (Sep. 2023 ) + -2389.051 (Dec. 2023 ) + -940.026 (Mar. 2024 ) = RM-6,404 Mil.

Lotte Chemical Titan Holdings Bhd (XKLS:5284) 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.

According to How to Beat the Market with the Sloan Ratio:

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, Lotte Chemical Titan Holdings Bhd has a Sloan Ratio of 25.83%, indicating earnings are more likely to be made up of accruals.

Lotte Chemical Titan Holdings Bhd Sloan Ratio % Related Terms

Thank you for viewing the detailed overview of Lotte Chemical Titan Holdings Bhd's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.

Lotte Chemical Titan Holdings Bhd (XKLS:5284) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Lotte Chemical Titan Holdings Bhd (XKLS:5284) » Definitions » Sloan Ratio %

Comparable Companies

Traded in Other Exchanges

N/A

Address

PLO 312, Jalan Tembaga 4, Pasir Gudang Industrial Estate, Pasir Gudang, JHR, MYS, 81700

Website

https://www.lottechem.my

Lotte Chemical Titan Holdings Bhd is a petrochemical producer. Its products include polyolefins, comprising polyethylene and polypropylene and olefins comprising ethylene and propylene and other derivatives such as butadiene, TBA(Tertiary Butyl Alcohol), benzene, and toluene. The company's reportable segments are Olefins and derivative products and Polyolefin products. Geographically the company operates in Malaysia, Indonesia, China (including Hong Kong), Southeast Asia, Northeast Asia, the Indian Sub-Continent, and Others.

Lotte Chemical Titan Holdings Bhd (XKLS:5284) Headlines

No Headlines