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.
Mitsui Chemicals's Sloan Ratio for the quarter that ended in Dec. 2023 was -0.31%.
As of Dec. 2023, Mitsui Chemicals has a Sloan Ratio of -0.31%, indicating the company is in the safe zone and there is no funny business with accruals.
Mitsui Chemicals Sloan Ratio % Historical Data
The historical data trend for Mitsui Chemicals'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 Mitsui Chemicals's Sloan Ratio %
For the Specialty Chemicals subindustry, Mitsui Chemicals'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.
Mitsui Chemicals's Sloan Ratio % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Mitsui Chemicals's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Mitsui Chemicals's Sloan Ratio % falls into.
Mitsui Chemicals 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.
Mitsui Chemicals's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
Mitsui Chemicals's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 134.591 (Mar. 2023 ) + 67.849 (Jun. 2023 ) + 75.052 (Sep. 2023 ) + 115.105 (Dec. 2023 ) = $393 Mil.
Mitsui Chemicals's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 427.616 (Mar. 2023 ) + -82.981 (Jun. 2023 ) + 659.603 (Sep. 2023 ) + 202.561 (Dec. 2023 ) = $1,207 Mil.
Mitsui Chemicals's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -292.03 (Mar. 2023 ) + 70.445 (Jun. 2023 ) + -307.085 (Sep. 2023 ) + -238.378 (Dec. 2023 ) = $-767 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.
Mitsui Chemicals (OTCPK:MITUY) 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, Mitsui Chemicals has a Sloan Ratio of -0.31%, indicating the company is in the safe zone and there is no funny business with accruals.
Mitsui Chemicals Sloan Ratio % Related Terms
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Mitsui Chemicals (Mitsui Chemicals) Business Description
Mitsui Chemicals Inc manufactures and sells a variety of chemicals, plastics, and chemical-based products. The firm organizes itself into five segments based on the product type. The basic materials segment, which generates more revenue than any other segment, sells petrochemicals, industrial chemicals, phenols, and polyesters. The mobility segment sells elastomers, performance compounds, and performance polymers to the automotive industry. The other three segments are healthcare, food and packaging, and others. The majority of revenue comes from Asia.
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