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.
PT Mitra Pack Tbk's Sloan Ratio for the quarter that ended in Sep. 2024 was 0.00%.
Warning Sign:
When sloan ratio (38.36)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Sep. 2024, PT Mitra Pack Tbk has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
PT Mitra Pack Tbk Sloan Ratio % Historical Data
The historical data trend for PT Mitra Pack Tbk'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 PT Mitra Pack Tbk's Sloan Ratio %
For the Specialty Industrial Machinery subindustry, PT Mitra Pack 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 Mitra Pack Tbk's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, PT Mitra Pack Tbk's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where PT Mitra Pack Tbk's Sloan Ratio % falls into.
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 Mitra Pack Tbk's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
PT Mitra Pack Tbk's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 2749.374 (Dec. 2023 ) + 2925.168 (Mar. 2024 ) + 2280.857 (Jun. 2024 ) + 4624.309 (Sep. 2024 ) = Rp12,580 Mil.
PT Mitra Pack Tbk's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 2864.028 (Dec. 2023 ) + 4437.087 (Mar. 2024 ) + 0 (Jun. 2024 ) + 0 (Sep. 2024 ) = Rp7,301 Mil.
PT Mitra Pack Tbk's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -3927.137 (Dec. 2023 ) + -67.101 (Mar. 2024 ) + 0 (Jun. 2024 ) + 0 (Sep. 2024 ) = Rp-3,994 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 Mitra Pack Tbk (ISX:PTMP) 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 Mitra Pack Tbk has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
PT Mitra Pack Tbk Sloan Ratio % Related Terms
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PT Mitra Pack Tbk specializes in Coding, Marking, Product Inspection Systems, and Food Packaging. The company engages in trading of product inspection systems such as metal detectors, X-ray inspection systems, check-weighers, and provides food and industrial goods packaging services. It is also engaged in trading of spare parts and chemicals, and providing related after-sales services. Its business segments are; Parts, Machines, Rental income, and Engineering income. The firm derives a majority of its revenue from the Parts, and Machines segment.
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