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.
Namhae Chemical's Sloan Ratio for the quarter that ended in Mar. 2024 was -7.02%.
As of Mar. 2024, Namhae Chemical has a Sloan Ratio of -7.02%, indicating the company is in the safe zone and there is no funny business with accruals.
Namhae Chemical Sloan Ratio % Historical Data
The historical data trend for Namhae Chemical'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 Namhae Chemical's Sloan Ratio %
For the Agricultural Inputs subindustry, Namhae Chemical'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.
Namhae Chemical's Sloan Ratio % Distribution in the Agriculture Industry
For the Agriculture industry and Basic Materials sector, Namhae Chemical's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Namhae Chemical's Sloan Ratio % falls into.
Namhae Chemical 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.
Namhae Chemical's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Namhae Chemical's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 3377.42 (Jun. 2023 ) + 1744.878 (Sep. 2023 ) + 4951.867 (Dec. 2023 ) + 14732.008 (Mar. 2024 ) = ₩24,806 Mil.
Namhae Chemical's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 73272.921 (Jun. 2023 ) + 78032.914 (Sep. 2023 ) + -28646.225 (Dec. 2023 ) + 16075.844 (Mar. 2024 ) = ₩138,735 Mil.
Namhae Chemical's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -26860.631 (Jun. 2023 ) + -8791.774 (Sep. 2023 ) + -14114.723 (Dec. 2023 ) + -6594.17 (Mar. 2024 ) = ₩-56,361 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.
Namhae Chemical (XKRX:025860) 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, Namhae Chemical has a Sloan Ratio of -7.02%, indicating the company is in the safe zone and there is no funny business with accruals.
Namhae Chemical Sloan Ratio % Related Terms
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Namhae Chemical (XKRX:025860) Business Description
Namhae Chemical Corp engaged in the manufacture and sale of agricultural and chemical products. It operates through various divisions namely; Fertilizer, Chemical, and Oil. The Fertilizer and Chemical business division produces and sells inorganic, compound, and phosphoric acid fertilizers, as well as chemicals such as ammonia, sulfuric acid, gypsum, and calcium phosphate. The Oil business division offers petroleum, gas, oil, and kerosene. All the business activity is functioned through the region of South Korea.
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