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MIELF (Mitsubishi Electric) Sloan Ratio % : -1.26% (As of Sep. 2024)


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What is Mitsubishi Electric Sloan Ratio %?

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.

Mitsubishi Electric's Sloan Ratio for the quarter that ended in Sep. 2024 was -1.26%.

As of Sep. 2024, Mitsubishi Electric has a Sloan Ratio of -1.26%, indicating the company is in the safe zone and there is no funny business with accruals.


Mitsubishi Electric Sloan Ratio % Historical Data

The historical data trend for Mitsubishi Electric'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.

* Premium members only.

Mitsubishi Electric Sloan Ratio % Chart

Mitsubishi Electric Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.68 -3.59 0.70 3.51 -0.59

Mitsubishi Electric Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.94 1.33 -0.47 -1.77 -1.26

Competitive Comparison of Mitsubishi Electric's Sloan Ratio %

For the Electrical Equipment & Parts subindustry, Mitsubishi Electric'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.


Mitsubishi Electric's Sloan Ratio % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Mitsubishi Electric's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Mitsubishi Electric's Sloan Ratio % falls into.



Mitsubishi Electric 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.

Mitsubishi Electric's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as

Sloan Ratio=(Net Income (A: Mar. 2024 )-Cash Flow from Operations (A: Mar. 2024 )
-Cash Flow from Investing (A: Mar. 2024 ))/Total Assets (A: Mar. 2024 )
=(1901.96-2773.214
--628.22)/41165.383
=-0.59%

Mitsubishi Electric's Sloan Ratio for the quarter that ended in Sep. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Sep. 2024 )
=(1914.753-3341.27
--889.969)/42620.724
=-1.26%

Mitsubishi Electric's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 457.482 (Dec. 2023 ) + 659.811 (Mar. 2024 ) + 311.276 (Jun. 2024 ) + 486.184 (Sep. 2024 ) = $1,915 Mil.
Mitsubishi Electric's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 118.737 (Dec. 2023 ) + 1445.254 (Mar. 2024 ) + 1164.83 (Jun. 2024 ) + 612.449 (Sep. 2024 ) = $3,341 Mil.
Mitsubishi Electric's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -803.402 (Dec. 2023 ) + 700.267 (Mar. 2024 ) + -403.788 (Jun. 2024 ) + -383.046 (Sep. 2024 ) = $-890 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.


Mitsubishi Electric  (OTCPK:MIELF) 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.

According to How to Beat the Market with the Sloan Ratio:

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, Mitsubishi Electric has a Sloan Ratio of -1.26%, indicating the company is in the safe zone and there is no funny business with accruals.


Mitsubishi Electric Sloan Ratio % Related Terms

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Mitsubishi Electric Business Description

Traded in Other Exchanges
Address
Tokyo Building, 2-7-3, Marunouchi, Chiyoda-ku, Tokyo, JPN, 100-8310
Mitsubishi Electric is a diversified industrials company that develops, manufactures and sells electrical equipment worldwide. The company's core segments include: industrial automation systems, energy and electric systems, electric devices, information and communication systems, and home appliances (which includes commercial air conditioning). Mitsubishi Electric was founded in 1921 and is headquartered in Tokyo.