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.
D G Khan Cement's Sloan Ratio for the quarter that ended in Sep. 2024 was -3.20%.
As of Sep. 2024, D G Khan Cement has a Sloan Ratio of -3.20%, indicating the company is in the safe zone and there is no funny business with accruals.
D G Khan Cement Sloan Ratio % Historical Data
The historical data trend for D G Khan Cement'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 D G Khan Cement's Sloan Ratio %
For the Building Materials subindustry, D G Khan Cement'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.
D G Khan Cement's Sloan Ratio % Distribution in the Building Materials Industry
For the Building Materials industry and Basic Materials sector, D G Khan Cement's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where D G Khan Cement's Sloan Ratio % falls into.
D G Khan Cement 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.
D G Khan Cement's Sloan Ratio for the fiscal year that ended in Jun. 2024 is calculated as
D G Khan Cement's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 377.162 (Dec. 2023 ) + 1279.6 (Mar. 2024 ) + -1731.927 (Jun. 2024 ) + 816.397 (Sep. 2024 ) = ₨741 Mil.
D G Khan Cement's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 1843.079 (Dec. 2023 ) + -2785.305 (Mar. 2024 ) + 2563.695 (Jun. 2024 ) + 1994.53 (Sep. 2024 ) = ₨3,616 Mil.
D G Khan Cement's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was 802.958 (Dec. 2023 ) + 631.803 (Mar. 2024 ) + 111.247 (Jun. 2024 ) + 318.436 (Sep. 2024 ) = ₨1,864 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.
D G Khan Cement (KAR:DGKC) 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, D G Khan Cement has a Sloan Ratio of -3.20%, indicating the company is in the safe zone and there is no funny business with accruals.
D G Khan Cement Sloan Ratio % Related Terms
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D G Khan Cement Ltd is engaged in the production and sale of Clinker, Ordinary Portland and Sulphate Resistant Cement. It has four cement plants, two plants; located at Dera Ghazi Khan, one in Khairpur District, Chakwal, and one in Hub District, Lasbela. Its products are distributed across the Pakistan market. The company has three operating segments, which include the Cement segment: Production and sale of clinker, ordinary portland, and sulphate resistant cement, the Paper segment: Manufacture and supply of paper products and packing material, the Dairy segment: Production and sale of raw milk.
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