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.
Lanka Walltiles's Sloan Ratio for the quarter that ended in Sep. 2024 was 13.41%.
As of Sep. 2024, Lanka Walltiles has a Sloan Ratio of 13.41%, indicating there is a warning stage of accrual build up.
Lanka Walltiles Sloan Ratio % Historical Data
The historical data trend for Lanka Walltiles'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 Lanka Walltiles's Sloan Ratio %
For the Building Products & Equipment subindustry, Lanka Walltiles'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.
Lanka Walltiles's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Lanka Walltiles's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Lanka Walltiles's Sloan Ratio % falls into.
Lanka Walltiles 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.
Lanka Walltiles's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
Lanka Walltiles's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 1096.148 (Dec. 2023 ) + 386.722 (Mar. 2024 ) + 216.18 (Jun. 2024 ) + 384.867 (Sep. 2024 ) = රු2,084 Mil.
Lanka Walltiles's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 2872.379 (Dec. 2023 ) + -918.281 (Mar. 2024 ) + -621.263 (Jun. 2024 ) + -1853.206 (Sep. 2024 ) = රු-520 Mil.
Lanka Walltiles's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -2245.895 (Dec. 2023 ) + -1072.423 (Mar. 2024 ) + -1120.48 (Jun. 2024 ) + -815.676 (Sep. 2024 ) = රු-5,254 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.
Lanka Walltiles (COL:LWL.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 Sep. 2024, Lanka Walltiles has a Sloan Ratio of 13.41%, indicating there is a warning stage of accrual build up.
Lanka Walltiles Sloan Ratio % Related Terms
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Lanka Walltiles PLC is a ceramic wall tile manufacturer in Sri Lanka. The company comprises the following business segments: Tiles and Associated Items segment, which manufactures and distributes wall tiles, floor tiles and related products; Biological Assets segment is engaged in the cultivation, processing, and sale of tea and rubber; Aluminum Products segment is engaged in the manufacturing and distribution of aluminum extrusions and allied products through a network of dealers and distributors; and Packaging Materials division, which manufactures and distributes packaging materials. The company caters to both domestic and international markets.
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