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.
Jungheinrich AG's Sloan Ratio for the quarter that ended in Dec. 2023 was 3.70%.
As of Dec. 2023, Jungheinrich AG has a Sloan Ratio of 3.70%, indicating the company is in the safe zone and there is no funny business with accruals.
Jungheinrich AG Sloan Ratio % Historical Data
The historical data trend for Jungheinrich AG'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 Jungheinrich AG's Sloan Ratio %
For the Specialty Industrial Machinery subindustry, Jungheinrich AG'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.
Jungheinrich AG's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Jungheinrich AG's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Jungheinrich AG's Sloan Ratio % falls into.
Jungheinrich AG 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.
Jungheinrich AG's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Jungheinrich AG's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 176.706 (Jun. 2023 ) + 148.501 (Dec. 2023 ) = $325 Mil.
Jungheinrich AG's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 197.075 (Jun. 2023 ) + 316.716 (Dec. 2023 ) = $514 Mil.
Jungheinrich AG's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -357.855 (Jun. 2023 ) + -109.232 (Dec. 2023 ) = $-467 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.
Jungheinrich AG (OTCPK:JGHAF) 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 Dec. 2023, Jungheinrich AG has a Sloan Ratio of 3.70%, indicating the company is in the safe zone and there is no funny business with accruals.
Jungheinrich AG Sloan Ratio % Related Terms
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Jungheinrich AG (Jungheinrich AG) Business Description
Jungheinrich is Europe's second-largest forklift manufacturer with a niche carved out in the retail and wholesale segment, including a stronghold in supermarkets. The company was founded in 1953 by Friedrich Jungheinrich, and control of Jungheinrich remains in his descendants' hands through special voting shares. Globally, Jungheinrich ranks number four behind Toyota and Kion Group, but nearly 90% of its sales comes from Europe, which still accounts for more than 30% of global forklift industry production.
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