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.
Dubai Taxi Co's Sloan Ratio for the quarter that ended in Sep. 2024 was 19.54%.
Warning Sign:
When sloan ratio (37.96)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Sep. 2024, Dubai Taxi Co has a Sloan Ratio of 19.54%, indicating earnings are more likely to be made up of accruals.
Dubai Taxi Co Sloan Ratio % Historical Data
The historical data trend for Dubai Taxi Co'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 Dubai Taxi Co's Sloan Ratio %
For the Rental & Leasing Services subindustry, Dubai Taxi Co'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.
Dubai Taxi Co's Sloan Ratio % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Dubai Taxi Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Dubai Taxi Co's Sloan Ratio % falls into.
Dubai Taxi Co 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.
Dubai Taxi Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Dubai Taxi Co's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 78.187 (Dec. 2023 ) + 108.032 (Mar. 2024 ) + 79.356 (Jun. 2024 ) + 59.739 (Sep. 2024 ) = د.إ325 Mil.
Dubai Taxi Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was -132.191 (Dec. 2023 ) + 115.131 (Mar. 2024 ) + 153.631 (Jun. 2024 ) + 162.791 (Sep. 2024 ) = د.إ299 Mil.
Dubai Taxi Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -76.947 (Dec. 2023 ) + -164.982 (Mar. 2024 ) + -212.605 (Jun. 2024 ) + 70.496 (Sep. 2024 ) = د.إ-384 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.
Dubai Taxi Co (DFM:DTC) 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, Dubai Taxi Co has a Sloan Ratio of 19.54%, indicating earnings are more likely to be made up of accruals.
Dubai Taxi Co Sloan Ratio % Related Terms
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Dubai Taxi Co is a mobility solutions and taxi operator company in Dubai. It offers a wide range of transportation solutions across its four main business lines, which include taxi services through its large, environmentally friendly fleet, VIP limousine services consisting of chauffeur-driven vehicles to provide luxury service, bus services, and last-mile delivery services via delivery bikes. It generates the majority of its revenue from Regular Taxi.
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