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.
As of Mar. 2024, PTlim Ivomas Pratama Tbk has a Sloan Ratio of -3.37%, indicating the company is in the safe zone and there is no funny business with accruals.
PTlim Ivomas Pratama Tbk Sloan Ratio % Historical Data
* 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 PTlim Ivomas Pratama Tbk's Sloan Ratio %
For the Packaged Foods subindustry, PTlim Ivomas Pratama 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.
PTlim Ivomas Pratama Tbk's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, PTlim Ivomas Pratama Tbk's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where PTlim Ivomas Pratama Tbk's Sloan Ratio % falls into.
PTlim Ivomas Pratama 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.
PTlim Ivomas Pratama Tbk's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
PTlim Ivomas Pratama Tbk's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -21932 (Jun. 2023 ) + 309316 (Sep. 2023 ) + 298737 (Dec. 2023 ) + 307109 (Mar. 2024 ) = Rp893,230 Mil.
PTlim Ivomas Pratama Tbk's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 504860 (Jun. 2023 ) + 1187992 (Sep. 2023 ) + 1220131 (Dec. 2023 ) + 395071 (Mar. 2024 ) = Rp3,308,054 Mil.
PTlim Ivomas Pratama Tbk's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -386461 (Jun. 2023 ) + -360958 (Sep. 2023 ) + -253197 (Dec. 2023 ) + -218471 (Mar. 2024 ) = Rp-1,219,087 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.
PTlim Ivomas Pratama Tbk (ISX:SIMP) 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, PTlim Ivomas Pratama Tbk has a Sloan Ratio of -3.37%, indicating the company is in the safe zone and there is no funny business with accruals.
PTlim Ivomas Pratama Tbk Sloan Ratio % Related Terms
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PTlim Ivomas Pratama Tbk (ISX:SIMP) Business Description
PT Salim Ivomas Pratama Tbk is an agribusiness in Southeast Asia that focuses on cultivating and processing palm oil. It invests in oil palm seed breeding and the development of oil palm seedlings to raise various plantations. The company owns several mills to produce crude palm oil and other derivative products such as palm kernel. Products are transported to subsidiaries to manufacture and package edible oils and fats. Additionally, its plantations produce sugar, rubber, and other plant products for sale and distribution. Packaged goods are sold through national, regional, and local distributors, as well as through a direct sales method under the company's own brands. It operates in two segments: Plantations and Edible Oil and Fats.
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