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.
Hemas Holdings's Sloan Ratio for the quarter that ended in Mar. 2024 was -2.24%.
As of Mar. 2024, Hemas Holdings has a Sloan Ratio of -2.24%, indicating the company is in the safe zone and there is no funny business with accruals.
Hemas Holdings Sloan Ratio % Historical Data
The historical data trend for Hemas Holdings'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 Hemas Holdings's Sloan Ratio %
For the Conglomerates subindustry, Hemas Holdings'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.
Hemas Holdings's Sloan Ratio % Distribution in the Conglomerates Industry
For the Conglomerates industry and Industrials sector, Hemas Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Hemas Holdings's Sloan Ratio % falls into.
Hemas Holdings 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.
Hemas Holdings's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
Hemas Holdings's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 1093.645 (Jun. 2023 ) + 1219.721 (Sep. 2023 ) + 2220.061 (Dec. 2023 ) + 1575.093 (Mar. 2024 ) = රු6,109 Mil.
Hemas Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 2443.481 (Jun. 2023 ) + 1833.089 (Sep. 2023 ) + 495.837 (Dec. 2023 ) + 9133.185 (Mar. 2024 ) = රු13,906 Mil.
Hemas Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -3500.141 (Jun. 2023 ) + -634.401 (Sep. 2023 ) + -503.975 (Dec. 2023 ) + -1059.769 (Mar. 2024 ) = රු-5,698 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.
Hemas Holdings (COL:HHL.N0000) 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, Hemas Holdings has a Sloan Ratio of -2.24%, indicating the company is in the safe zone and there is no funny business with accruals.
Hemas Holdings Sloan Ratio % Related Terms
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Hemas Holdings (COL:HHL.N0000) Business Description
Hemas Holdings PLC holds investments in companies with diversified businesses in Sri Lanka. Its businesses include manufacturing, trading and distributing FMCG products, pharmaceutical products, healthcare products, provision of medical care, operating tourism business, hotel management, airlines, shipping business, IT solutions, among others. It has the following reportable segments: Consumer, Healthcare, Leisure, Travel & Aviation, Mobility, and Other segments. The healthcare segment which generates majority revenue distributes pharmaceuticals, surgical and diagnostics products, and owns and manages hospitals.
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