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.
Videocon Industries's Sloan Ratio for the quarter that ended in Sep. 2022 was 0.00%.
As of Sep. 2022, Videocon Industries has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Videocon Industries Sloan Ratio % Historical Data
The historical data trend for Videocon Industries'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 Videocon Industries's Sloan Ratio %
For the Furnishings, Fixtures & Appliances subindustry, Videocon Industries'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.
Videocon Industries's Sloan Ratio % Distribution in the Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Videocon Industries's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Videocon Industries's Sloan Ratio % falls into.
Videocon Industries 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.
Videocon Industries's Sloan Ratio for the fiscal year that ended in Mar. 2022 is calculated as
Videocon Industries's Net Income for the trailing twelve months (TTM) ended in Sep. 2022 was -15800.98 (Dec. 2021 ) + -15219.24 (Mar. 2022 ) + -15986.09 (Jun. 2022 ) + -10708.46 (Sep. 2022 ) = ₹-57,715 Mil.
Videocon Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2022 was 0 (Dec. 2021 ) + 0 (Mar. 2022 ) + 0 (Jun. 2022 ) + 0 (Sep. 2022 ) = ₹0 Mil.
Videocon Industries's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2022 was 0 (Dec. 2021 ) + 0 (Mar. 2022 ) + 0 (Jun. 2022 ) + 0 (Sep. 2022 ) = ₹0 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.
Videocon Industries (BOM:511389) 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. 2022, Videocon Industries has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Videocon Industries Sloan Ratio % Related Terms
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Videocon Industries (BOM:511389) Business Description
Videocon Industries is an India-based company that focuses on manufacturing and distributing a variety of consumer electronics and home appliances. The company is principally engaged in three business segments: consumer electronics and home appliances; crude oil and natural gas; and telecommunications. The crude oil and natural gas segment generates the most revenue for the company through extraction and production of natural oil and gas. The consumer electronics and home appliances business focuses on manufacturing products that include air conditioners, refrigerators, televisions, washing machines, and small home appliances, and this business contributes the second-largest portion of the company's total revenue.
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