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.
* 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 Sanyo Chemical Industries's Sloan Ratio %
For the Specialty Chemicals subindustry, Sanyo Chemical Industries'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.
Sanyo Chemical Industries's Sloan Ratio % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sanyo Chemical Industries's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sanyo Chemical Industries's Sloan Ratio % falls into.
Sanyo Chemical Industries 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.
Sanyo Chemical Industries's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
Sanyo Chemical Industries's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 19.327 (Jun. 2023 ) + 9.114 (Sep. 2023 ) + -9.031 (Dec. 2023 ) + -70.502 (Mar. 2024 ) = €-51 Mil.
Sanyo Chemical Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 18.08 (Jun. 2023 ) + 46.177 (Sep. 2023 ) + 27.456 (Dec. 2023 ) + 33.455 (Mar. 2024 ) = €125 Mil.
Sanyo Chemical Industries's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -4.78 (Jun. 2023 ) + -15.781 (Sep. 2023 ) + -7.604 (Dec. 2023 ) + -11.348 (Mar. 2024 ) = €-40 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.
Sanyo Chemical Industries (FRA:XSI) 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, Sanyo Chemical Industries has a Sloan Ratio of -10.82%, indicating there is a warning stage of accrual build up.
Sanyo Chemical Industries Sloan Ratio % Related Terms
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Sanyo Chemical Industries (FRA:XSI) Business Description
Sanyo Chemical Industries Ltd manufactures and sells a variety of chemicals and chemical-based products. The company organizes its operations into four primary segments based on product type. The toiletries and health care segment, which generates the most revenue of any segment, sells disposable baby diapers, surfactants used to produce hair care products and detergents, and base materials for cosmetics and pharmaceuticals. The petroleum and automotives segment sells polyurethane used to produce automobile seats and interior components as well as fuel additives. The plastics and textiles and information and electronics segment sells a variety of plastic products for consumers as well as the transportation and electronics industries. The majority of revenue comes from Japan.
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