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, Johnson Electric Holdings has a Sloan Ratio of -3.01%, indicating the company is in the safe zone and there is no funny business with accruals.
Johnson Electric Holdings 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 Johnson Electric Holdings's Sloan Ratio %
For the Auto Parts subindustry, Johnson Electric Holdings'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.
Johnson Electric Holdings's Sloan Ratio % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Johnson Electric Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Johnson Electric Holdings's Sloan Ratio % falls into.
Johnson Electric Holdings 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.
Johnson Electric Holdings's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Johnson Electric Holdings's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 120.149 (Sep. 2023 ) + 109.08 (Mar. 2024 ) = $229 Mil.
Johnson Electric Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 194.33 (Sep. 2023 ) + 387.553 (Mar. 2024 ) = $582 Mil.
Johnson Electric Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -115.054 (Sep. 2023 ) + -110.351 (Mar. 2024 ) = $-225 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.
Johnson Electric Holdings (OTCPK:JEHLY) 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, Johnson Electric Holdings has a Sloan Ratio of -3.01%, indicating the company is in the safe zone and there is no funny business with accruals.
Johnson Electric Holdings Sloan Ratio % Related Terms
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Johnson Electric Holdings (Johnson Electric Holdings) Business Description
Johnson Electric Holdings Ltd, along with its subsidiaries, is engaged in the manufacturing and selling of electro-mechanical motion systems and solutions. The company is organized into two business units: Automotive Products Group and Industry Products Group of which Automotive Products Group contributes the vast majority of its total revenue. Its automotive products include cooling fans, electric power steering motors, headlamp actuators, transmission and driveline actuators. Its industry segment offers medical devices, circuit breakers, power tools, industrial and laboratory equipment, building automation, and optronics. The company operates in Hong Kong, Switzerland, Canada, Serbia, and Others.
Johnson Electric Holdings (Johnson Electric Holdings) Headlines
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