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.
SMEC Co's Sloan Ratio for the quarter that ended in Mar. 2024 was 4.47%.
As of Mar. 2024, SMEC Co has a Sloan Ratio of 4.47%, indicating the company is in the safe zone and there is no funny business with accruals.
SMEC Co Sloan Ratio % Historical Data
The historical data trend for SMEC 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.
For the Specialty Industrial Machinery subindustry, SMEC 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.
SMEC Co's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, SMEC Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where SMEC Co's Sloan Ratio % falls into.
SMEC 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.
SMEC Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
SMEC Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 4799.124 (Jun. 2023 ) + 4825.361 (Sep. 2023 ) + 2837.947 (Dec. 2023 ) + 6561.328 (Mar. 2024 ) = ₩19,024 Mil.
SMEC Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 4241.483 (Jun. 2023 ) + 602.77 (Sep. 2023 ) + 5197.595 (Dec. 2023 ) + -84.246 (Mar. 2024 ) = ₩9,958 Mil.
SMEC Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -571.586 (Jun. 2023 ) + 132.302 (Sep. 2023 ) + 135.712 (Dec. 2023 ) + -485.622 (Mar. 2024 ) = ₩-789 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.
SMEC Co (XKRX:099440) 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, SMEC Co has a Sloan Ratio of 4.47%, indicating the company is in the safe zone and there is no funny business with accruals.
SMEC Co Sloan Ratio % Related Terms
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SMEC Co Ltd manufactures and sells machine tools, semiconductor and telecommunication equipment, robots, and laser equipment. The company offers machine tools, such as CNC lathes, machining center; parts; and robots associated with LCD production. It also provides network solutions, such as trunk, signaling, media, video, and IMS media gateways, as well as media gateway controllers, media resource function solutions, and session border controllers; LTE gateway solutions, including LTE SmallCell, evolved packet data, and trusted wireless access gateways; and WiFi solutions comprising WiFi access points and WiFi AP controllers. In addition, the company offers military satellite communication system; Internet of things; digital radio communication system solutions.
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