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 Dec. 2023, Kuala Lumpur Kepong Bhd has a Sloan Ratio of 2.31%, indicating the company is in the safe zone and there is no funny business with accruals.
Kuala Lumpur Kepong Bhd 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 Kuala Lumpur Kepong Bhd's Sloan Ratio %
For the Specialty Chemicals subindustry, Kuala Lumpur Kepong Bhd'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.
Kuala Lumpur Kepong Bhd's Sloan Ratio % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Kuala Lumpur Kepong Bhd's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Kuala Lumpur Kepong Bhd's Sloan Ratio % falls into.
Kuala Lumpur Kepong Bhd 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.
Kuala Lumpur Kepong Bhd's Sloan Ratio for the fiscal year that ended in Sep. 2023 is calculated as
Kuala Lumpur Kepong Bhd's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 42.744 (Mar. 2023 ) + 18.164 (Jun. 2023 ) + 24.838 (Sep. 2023 ) + 48.721 (Dec. 2023 ) = $134 Mil.
Kuala Lumpur Kepong Bhd's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 268.798 (Mar. 2023 ) + 100.71 (Jun. 2023 ) + -23.583 (Sep. 2023 ) + 119.106 (Dec. 2023 ) = $465 Mil.
Kuala Lumpur Kepong Bhd's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -80.978 (Mar. 2023 ) + -94.942 (Jun. 2023 ) + -122.169 (Sep. 2023 ) + -186.985 (Dec. 2023 ) = $-485 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.
Kuala Lumpur Kepong Bhd (OTCPK:KLKBF) 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, Kuala Lumpur Kepong Bhd has a Sloan Ratio of 2.31%, indicating the company is in the safe zone and there is no funny business with accruals.
Kuala Lumpur Kepong Bhd Sloan Ratio % Related Terms
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Kuala Lumpur Kepong Bhd (Kuala Lumpur Kepong Bhd) Business Description
Kuala Lumpur Kepong Bhd harvests oil palm and rubber plantations in Southeast Asia. On top of utilizing the plantations, the company manufactures fatty acids and alcohols, oleochemicals, soaps, rubber gloves, and other specialty chemicals and is also engaged in the business of Property development. Its reportable segments include, Plantation, Manufacturing, Property Development , Investment Holding and Others. Majority of the revenue is generated from its manufacturing segment which is involved in manufacturing of oleochemicals, non-ionic surfactants and esters, rubber gloves, parquet flooring products, pharmaceutical products, storing and distribution of bulk liquid, refining of palm products, kernel crushing and trading of palm products.
Kuala Lumpur Kepong Bhd (Kuala Lumpur Kepong Bhd) Headlines
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