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.
Sharda Cropchem's Sloan Ratio for the quarter that ended in Mar. 2024 was 0.00%.
As of Mar. 2024, Sharda Cropchem has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Sharda Cropchem Sloan Ratio % Historical Data
The historical data trend for Sharda Cropchem'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 Sharda Cropchem's Sloan Ratio %
For the Agricultural Inputs subindustry, Sharda Cropchem'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.
Sharda Cropchem's Sloan Ratio % Distribution in the Agriculture Industry
For the Agriculture industry and Basic Materials sector, Sharda Cropchem's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sharda Cropchem's Sloan Ratio % falls into.
Sharda Cropchem 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.
Sharda Cropchem's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
Sharda Cropchem's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -886.399 (Jun. 2023 ) + -275.812 (Sep. 2023 ) + 46.38 (Dec. 2023 ) + 1434.662 (Mar. 2024 ) = ₹319 Mil.
Sharda Cropchem'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 Mil.
Sharda Cropchem'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 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.
Sharda Cropchem (BOM:538666) 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, Sharda Cropchem has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Sharda Cropchem Sloan Ratio % Related Terms
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Sharda Cropchem Ltd is an agrochemical company based in India. It markets and sells formulations and active ingredients for agricultural purposes world wide through its subsidiaries. its business is obtained from the European continent. Its customers are also spread across North America, Latin America, and the Rest of the world. The company functions through two segments, which are Agrochemicals, and Non Agrochemicals. The company earns its income through the development and sale of agrochemicals such as insecticides, herbicides, fungicides, and biocides. The company also sells conveyor belts and V-belts under the belts segment.
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