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Toyota Motor (Toyota Motor) Sloan Ratio % : 5.74% (As of Dec. 2023)


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What is Toyota Motor 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.

Toyota Motor's Sloan Ratio for the quarter that ended in Dec. 2023 was 5.74%.

As of Dec. 2023, Toyota Motor has a Sloan Ratio of 5.74%, indicating the company is in the safe zone and there is no funny business with accruals.


Toyota Motor Sloan Ratio % Historical Data

The historical data trend for Toyota Motor'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.

Toyota Motor Sloan Ratio % Chart

Toyota Motor Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.52 3.27 6.75 -0.44 1.47

Toyota Motor Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Sloan Ratio % Get a 7-Day Free Trial 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 2.56 1.47 2.22 4.64 5.74

Competitive Comparison of Toyota Motor's Sloan Ratio %

For the Auto Manufacturers subindustry, Toyota Motor'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.


Toyota Motor's Sloan Ratio % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Toyota Motor's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Toyota Motor's Sloan Ratio % falls into.



Toyota Motor 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.

Toyota Motor's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as

Sloan Ratio=(Net Income (A: Mar. 2023 )-Cash Flow from Operations (A: Mar. 2023 )
-Cash Flow from Investing (A: Mar. 2023 ))/Total Assets (A: Mar. 2023 )
=(18339.362-22108.192
--11961.982)/555893.982
=1.47%

Toyota Motor'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 )
=(31483.926-27806.482
--29883.284)/585020.673
=5.74%

Toyota Motor's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 4131.934 (Mar. 2023 ) + 9276.95 (Jun. 2023 ) + 8644.567 (Sep. 2023 ) + 9430.475 (Dec. 2023 ) = $31,484 Mil.
Toyota Motor's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 8447.678 (Mar. 2023 ) + 9608.349 (Jun. 2023 ) + 6221.793 (Sep. 2023 ) + 3528.662 (Dec. 2023 ) = $27,806 Mil.
Toyota Motor's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -638.143 (Mar. 2023 ) + -7902.299 (Jun. 2023 ) + -10379.364 (Sep. 2023 ) + -10963.478 (Dec. 2023 ) = $-29,883 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.


Toyota Motor  (NYSE:TM) 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, Toyota Motor has a Sloan Ratio of 5.74%, indicating the company is in the safe zone and there is no funny business with accruals.


Toyota Motor Sloan Ratio % Related Terms

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Toyota Motor (Toyota Motor) Business Description

Address
1 Toyota-cho, Aichi Prefecture, Toyota, JPN, 471-8571
Founded in 1937, Toyota is one of the world's largest automakers with 10.56 million units sold at retail in fiscal 2023 across its light vehicle brands. Brands include Toyota, Lexus, Daihatsu, and truck maker Hino; market share in Japan is about 51% excluding mini-vehicles, while U.S. share is around 15%. The firm also owns 3.3% of Denso, a parts supplier, about 20% of Subaru, and holds investments in many other firms, including shares of Uber Technologies, Joby Aviation, Aurora Innovation, Isuzu Motors, and about 5% in each of Mazda and Suzuki. Fiscal 2023 sales excluding financial services were JPY 34.4 trillion. Toyota also has a financing arm and manufactures homes and boats.