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.
enX Group's Sloan Ratio for the quarter that ended in Feb. 2024 was 8.10%.
As of Feb. 2024, enX Group has a Sloan Ratio of 8.10%, indicating the company is in the safe zone and there is no funny business with accruals.
enX Group Sloan Ratio % Historical Data
The historical data trend for enX Group'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 enX Group's Sloan Ratio %
For the Specialty Industrial Machinery subindustry, enX Group'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.
enX Group's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, enX Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where enX Group's Sloan Ratio % falls into.
enX Group 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.
enX Group's Sloan Ratio for the fiscal year that ended in Aug. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
enX Group's Net Income for the trailing twelve months (TTM) ended in Feb. 2024 was 169.655 (Aug. 2023 ) + 155.882 (Feb. 2024 ) = R326 Mil.
enX Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2024 was 88.659 (Aug. 2023 ) + -231.027 (Feb. 2024 ) = R-142 Mil.
enX Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Feb. 2024 was -24.339 (Aug. 2023 ) + -8.062 (Feb. 2024 ) = R-32 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.
enX Group (JSE:ENX) 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 Feb. 2024, enX Group has a Sloan Ratio of 8.10%, indicating the company is in the safe zone and there is no funny business with accruals.
enX Group Sloan Ratio % Related Terms
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enX Group Ltd is a diversified industrial group that provides industrial equipment, parts, related components, support services, and petrochemical products to diverse industries in South Africa, Sub-Saharan Africa, and the UK. The company operates through three segments including enX Power, enX Lubricants and enX Chemicals. enX Power involves New Way Power designs, manufacturers, installs, rents and maintains diesel generators and distributes a range of industrial engines. enX Chemicals involves West African International imports, stores and distributes plastics, polymers, rubber and speciality chemicals as well as conveyor belting, steel cord and conveyer belting fabric into Southern Africa. enX Lubricants segment African Group Lubricants produces and markets oil lubricants.
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