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 PT Hexindo Adiperkasa Tbk's Sloan Ratio %
For the Industrial Distribution subindustry, PT Hexindo Adiperkasa Tbk'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.
PT Hexindo Adiperkasa Tbk's Sloan Ratio % Distribution in the Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, PT Hexindo Adiperkasa Tbk's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where PT Hexindo Adiperkasa Tbk's Sloan Ratio % falls into.
PT Hexindo Adiperkasa Tbk 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.
PT Hexindo Adiperkasa Tbk's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
PT Hexindo Adiperkasa Tbk's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 199529.196 (Dec. 2023 ) + 182849.091 (Mar. 2024 ) + 87840.327 (Jun. 2024 ) + 81997.666 (Sep. 2024 ) = Rp552,216 Mil.
PT Hexindo Adiperkasa Tbk's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 5935.157 (Dec. 2023 ) + -40513.229 (Mar. 2024 ) + -277842.439 (Jun. 2024 ) + 73935.102 (Sep. 2024 ) = Rp-238,485 Mil.
PT Hexindo Adiperkasa Tbk's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -9064.604 (Dec. 2023 ) + -10035.811 (Mar. 2024 ) + -20148.703 (Jun. 2024 ) + -20056.207 (Sep. 2024 ) = Rp-59,305 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.
PT Hexindo Adiperkasa Tbk (ISX:HEXA) 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, PT Hexindo Adiperkasa Tbk has a Sloan Ratio of 12.86%, indicating there is a warning stage of accrual build up.
PT Hexindo Adiperkasa Tbk Sloan Ratio % Related Terms
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PT Hexindo Adiperkasa Tbk distributes heavy equipment and spare parts in Indonesia. Its products include Mini Excavators, Medium Excavators, Large Excavators / Loading Shovels, Wheel Loaders, Rigid Frame Trucks, BELL Articulated Dump Trucks, Used Equipment, ConSite, and Industry Solutions. The company serves the mining, construction, agribusiness, and forestry industries. It has branches and representative offices across Indonesia, including Banda Aceh, Medan, Jakarta, Semarang, Balikpapan, Samarinda, Jayapura, Makassar, Palu, and Kendari, among others.
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