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.
CPL Group PCL's Sloan Ratio for the quarter that ended in Mar. 2024 was -8.10%.
As of Mar. 2024, CPL Group PCL has a Sloan Ratio of -8.10%, indicating the company is in the safe zone and there is no funny business with accruals.
CPL Group PCL Sloan Ratio % Historical Data
The historical data trend for CPL Group PCL'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 CPL Group PCL's Sloan Ratio %
For the Footwear & Accessories subindustry, CPL Group PCL'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.
CPL Group PCL's Sloan Ratio % Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, CPL Group PCL's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where CPL Group PCL's Sloan Ratio % falls into.
CPL Group PCL 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.
CPL Group PCL's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
CPL Group PCL's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -16.436 (Jun. 2023 ) + -46.834 (Sep. 2023 ) + -75.454 (Dec. 2023 ) + 10.469 (Mar. 2024 ) = ฿-128 Mil.
CPL Group PCL's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 60.095 (Jun. 2023 ) + -21.677 (Sep. 2023 ) + -55.299 (Dec. 2023 ) + 134.749 (Mar. 2024 ) = ฿118 Mil.
CPL Group PCL's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -23.241 (Jun. 2023 ) + -9.256 (Sep. 2023 ) + -8.554 (Dec. 2023 ) + -11.416 (Mar. 2024 ) = ฿-52 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.
CPL Group PCL (BKK:CPL) 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, CPL Group PCL has a Sloan Ratio of -8.10%, indicating the company is in the safe zone and there is no funny business with accruals.
CPL Group PCL Sloan Ratio % Related Terms
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CPL Group PCL is a leather manufacturer. It is engaged in the manufacturing and distribution of leather products, rendering of tanning service and manufacturing and distribution of personal protective equipment. Its product range includes Full Grain Leather and Suede Split Leather. Its leather is Nubuck Leather, Oil & Wax Leather, Pigment Leather, Sued Leather and Water Proof Leather. Its products manufactured for delivery to domestic and foreign shoe factories. The company's segments are Tannery industry segment which has revenue from sales of finished leather products and rendering service of tanning and Personal protective equipment segment which has revenue from sales of personal protective equipment products.
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