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.
Jinpan International's Sloan Ratio for the quarter that ended in Sep. 2015 was 3.12%.
As of Sep. 2015, Jinpan International has a Sloan Ratio of 3.12%, indicating the company is in the safe zone and there is no funny business with accruals.
Jinpan International Sloan Ratio % Historical Data
The historical data trend for Jinpan International'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 Jinpan International's Sloan Ratio %
For the Electronic Components subindustry, Jinpan International'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.
Jinpan International's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Jinpan International's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Jinpan International's Sloan Ratio % falls into.
Jinpan International 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.
Jinpan International's Sloan Ratio for the fiscal year that ended in Dec. 2014 is calculated as
Jinpan International's Net Income for the trailing twelve months (TTM) ended in Sep. 2015 was 4.356 (Dec. 2014 ) + 1.468 (Mar. 2015 ) + 5.553 (Jun. 2015 ) + 3.08 (Sep. 2015 ) = $14.5 Mil.
Jinpan International's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2015 was 16.251 (Dec. 2014 ) + -8.604 (Mar. 2015 ) + -0.464 (Jun. 2015 ) + 10.413 (Sep. 2015 ) = $17.6 Mil.
Jinpan International's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2015 was -7.101 (Dec. 2014 ) + 3.839 (Mar. 2015 ) + 3.562 (Jun. 2015 ) + -16.041 (Sep. 2015 ) = $-15.7 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.
Jinpan International (NAS:JST) 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 Sep. 2015, Jinpan International has a Sloan Ratio of 3.12%, indicating the company is in the safe zone and there is no funny business with accruals.
Jinpan International Sloan Ratio % Related Terms
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Jinpan International (Jinpan International) Business Description
Jinpan International Ltd was incorporated in the British Virgin Islands on April 3, 1997 under the International Business Companies Act of the British Virgin Islands. The Company design, manufacture and sells electrical power control and distribution equipment that are used in commercial, industrial, and infrastructural applications. Its product lines include cast resin transformers, VPI transformers, VPI line reactors, switchgears and unit substations. Its manufactures low and medium voltage switchgear products under license from Schneider. It also manufactures switchgears, Vacuum Pressure Impregnated (VPI) reactors and transformers, and unit substations. The Company offers switchgear products for general power distribution and for specialized infrastructural and industrial applications. The two main categories of dry type transformers that currently dominate the market are cast resin and open ventilated dry type transformers. Cast resin dry type transformers are predominant in Europe, Japan, and newly developed markets in Asia, including China. Open ventilated dry type transformers are widely used in North America. The Company manufactures medium and low voltage switchgear products for the China market. They use sheet metal to manufacture switchgear enclosures, coat the enclosure, and assemble switchgears using components from brand name suppliers such as Siemens and Schneider. The Company owns the rights to the trademark 'JST,' which is registered with the Trademark Bureau of the State Administration of Industry and Commerce in China.
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