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SK Telecom Co (SK Telecom Co) Sloan Ratio %

: -1.66% (As of Dec. 2023)
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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.

SK Telecom Co's Sloan Ratio for the quarter that ended in Dec. 2023 was -1.66%.

As of Dec. 2023, SK Telecom Co has a Sloan Ratio of -1.66%, indicating the company is in the safe zone and there is no funny business with accruals.


SK Telecom Co Sloan Ratio % Historical Data

The historical data trend for SK Telecom 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.

* Premium members only.

SK Telecom Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Sloan Ratio %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.96 -0.14 2.79 -4.60 -1.66

SK Telecom Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Sloan Ratio % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -4.56 -3.57 -4.22 -3.23 -1.66

Competitive Comparison

For the Telecom Services subindustry, SK Telecom 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.


SK Telecom Co Sloan Ratio % Distribution

For the Telecommunication Services industry and Communication Services sector, SK Telecom Co's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where SK Telecom Co's Sloan Ratio % falls into.



SK Telecom 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.

SK Telecom Co'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 )
=(838.405-3792.721
--2570.469)/23090.581
=-1.66%

SK Telecom Co's Sloan Ratio for the quarter that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Dec. 2023 )
=(834.41-3764.371
--2545.505)/23090.581
=-1.66%

SK Telecom Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 222.437 (Mar. 2023 ) + 253.754 (Jun. 2023 ) + 223.291 (Sep. 2023 ) + 134.928 (Dec. 2023 ) = $834 Mil.
SK Telecom Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 784.683 (Mar. 2023 ) + 687.843 (Jun. 2023 ) + 1361.233 (Sep. 2023 ) + 930.612 (Dec. 2023 ) = $3,764 Mil.
SK Telecom Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -599.57 (Mar. 2023 ) + -243.785 (Jun. 2023 ) + -1116.911 (Sep. 2023 ) + -585.239 (Dec. 2023 ) = $-2,546 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.


SK Telecom Co  (NYSE:SKM) 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 Dec. 2023, SK Telecom Co has a Sloan Ratio of -1.66%, indicating the company is in the safe zone and there is no funny business with accruals.


SK Telecom Co Sloan Ratio % Related Terms

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SK Telecom Co (SK Telecom Co) Business Description

Traded in Other Exchanges
Address
SK T-Tower, 65, Eulji-ro, Jung-gu, Seoul, KOR, 04539
SK Telecom is South Korea's largest wireless telecom operator, with 30 million mobile customers. The firm also owns SK Broadband (formerly Hanaro Telecom), which has 6.9 million broadband customers and 9.5 million pay TV customers (6.8 million IPTV and 2.7 million Cable TV). While the firm also purchased stakes in businesses in security and semiconductor memory production as well as developing e-commerce and internet platform businesses, these were all spun off into the separate, SK Square business in November 2021. The company was formed after SK Group purchased KT's mobile business in 1994.

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