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.
E Media Holdings's Sloan Ratio for the quarter that ended in Sep. 2024 was 4.73%.
As of Sep. 2024, E Media Holdings has a Sloan Ratio of 4.73%, indicating the company is in the safe zone and there is no funny business with accruals.
E Media Holdings Sloan Ratio % Historical Data
The historical data trend for E Media Holdings'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 E Media Holdings's Sloan Ratio %
For the Entertainment subindustry, E Media 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.
E Media Holdings's Sloan Ratio % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, E Media Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where E Media Holdings's Sloan Ratio % falls into.
E Media 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.
E Media 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.
E Media Holdings's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 138.105 (Mar. 2024 ) + 98.626 (Sep. 2024 ) = R237 Mil.
E Media Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 155.237 (Mar. 2024 ) + -33.82 (Sep. 2024 ) = R121 Mil.
E Media Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -64.42 (Mar. 2024 ) + -106.135 (Sep. 2024 ) = R-171 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.
E Media Holdings (JSE:EMN) 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, E Media Holdings has a Sloan Ratio of 4.73%, indicating the company is in the safe zone and there is no funny business with accruals.
E Media Holdings Sloan Ratio % Related Terms
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E Media Holdings Ltd is a South Africa-based investment holding company. Through its subsidiaries, it is predominantly engaged in the media and entertainment business. The company product portfolio includes products and services like E.TV a free-to-air commercial television channel; eNCA, a 24-hour news channel; OpenView HD and YFM, a radio station that targets the youth market, and others. In addition, the company also provides property and facilities services, including broadcast and television studios, post-production facilities, equipment rental, and sales; as well as holds investments in the television broadcasting and content creation sectors. A majority of its revenue is earned from the South African market.
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