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.
As of Mar. 2024, Narbada Gems & Jewellery has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Narbada Gems & Jewellery Sloan Ratio % Historical Data
* 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 Narbada Gems & Jewellery's Sloan Ratio %
For the Luxury Goods subindustry, Narbada Gems & Jewellery'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.
Narbada Gems & Jewellery's Sloan Ratio % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Narbada Gems & Jewellery's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Narbada Gems & Jewellery's Sloan Ratio % falls into.
Narbada Gems & Jewellery 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.
Narbada Gems & Jewellery's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
Narbada Gems & Jewellery's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 25.465 (Jun. 2023 ) + 5.571 (Sep. 2023 ) + 43.167 (Dec. 2023 ) + -23.354 (Mar. 2024 ) = ₹50.8 Mil.
Narbada Gems & Jewellery's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) + 0 (Mar. 2024 ) = ₹0.0 Mil.
Narbada Gems & Jewellery's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) + 0 (Mar. 2024 ) = ₹0.0 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.
Narbada Gems & Jewellery (BOM:519455) 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, Narbada Gems & Jewellery has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Narbada Gems & Jewellery Sloan Ratio % Related Terms
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Narbada Gems & Jewellery (BOM:519455) Business Description
Narbada Gems & Jewellery Ltd is engaged in the business of manufacturing and trading Gold, Color Stones, and Diamond jewellery with an emphasis on rose-cut and flat diamond jewellery. The company provides a selection of contemporary styles and custom jewelry to its clients. It offers a range of jewelry collections product including Gemstone necklace sets, Earrings, and Pendants. the company operates in a single segment which is Jewellery manufacturing. It derives key revenue from India.
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