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.
Japan Airlines Co's Sloan Ratio for the quarter that ended in Mar. 2024 was -2.86%.
As of Mar. 2024, Japan Airlines Co has a Sloan Ratio of -2.86%, indicating the company is in the safe zone and there is no funny business with accruals.
Japan Airlines Co Sloan Ratio % Historical Data
The historical data trend for Japan Airlines 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 Japan Airlines Co's Sloan Ratio %
For the Airlines subindustry, Japan Airlines 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.
Japan Airlines Co's Sloan Ratio % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Japan Airlines Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Japan Airlines Co's Sloan Ratio % falls into.
Japan Airlines 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.
Japan Airlines Co's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
Japan Airlines Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 163.146 (Jun. 2023 ) + 261.138 (Sep. 2023 ) + 168.091 (Dec. 2023 ) + 64.485 (Mar. 2024 ) = $657 Mil.
Japan Airlines Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 874.729 (Jun. 2023 ) + 607.075 (Sep. 2023 ) + 415.859 (Dec. 2023 ) + 605.172 (Mar. 2024 ) = $2,503 Mil.
Japan Airlines Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -251.715 (Jun. 2023 ) + -317.048 (Sep. 2023 ) + -508.92 (Dec. 2023 ) + -262.771 (Mar. 2024 ) = $-1,340 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.
Japan Airlines Co (OTCPK:JAPSY) 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, Japan Airlines Co has a Sloan Ratio of -2.86%, indicating the company is in the safe zone and there is no funny business with accruals.
Japan Airlines Co Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Japan Airlines Co's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Japan Airlines Co (Japan Airlines Co) Business Description
Japan Airlines is an international air transport services company. It offers scheduled and nonscheduled air transport services and aerial work services. The company operates large aircraft, medium-size aircraft, small aircraft, and regional jets. JAL's route network comprises over 100 domestic routes and over 50 international routes. The airline flies to over 50 countries and regions and connects over 300 airports.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
JAPSY has been successfully added to your 