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, Mitsubishi Chemical Group has a Sloan Ratio of -1.52%, indicating the company is in the safe zone and there is no funny business with accruals.
Mitsubishi Chemical Group 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 Mitsubishi Chemical Group's Sloan Ratio %
For the Specialty Chemicals subindustry, Mitsubishi Chemical 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.
Mitsubishi Chemical Group's Sloan Ratio % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Mitsubishi Chemical Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Mitsubishi Chemical Group's Sloan Ratio % falls into.
Mitsubishi Chemical 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.
Mitsubishi Chemical Group's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
Mitsubishi Chemical Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 591.235 (Mar. 2023 ) + 300.91 (Jun. 2023 ) + 166.905 (Sep. 2023 ) + 254.56 (Dec. 2023 ) = $1,314 Mil.
Mitsubishi Chemical Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 1355.71 (Mar. 2023 ) + 388.92 (Jun. 2023 ) + 951.909 (Sep. 2023 ) + 620.344 (Dec. 2023 ) = $3,317 Mil.
Mitsubishi Chemical Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -547.641 (Mar. 2023 ) + -405.332 (Jun. 2023 ) + -394.569 (Sep. 2023 ) + -25.746 (Dec. 2023 ) = $-1,373 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 Chemical Group (OTCPK:MTLHF) 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, Mitsubishi Chemical Group has a Sloan Ratio of -1.52%, indicating the company is in the safe zone and there is no funny business with accruals.
Mitsubishi Chemical Group Sloan Ratio % Related Terms
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Mitsubishi Chemical Group (Mitsubishi Chemical Group) Business Description
Mitsubishi Chemical Group Corp is a holdings company, which manufactures and sells chemicals, plastics, and pharmaceuticals. It organizes itself into three segments based on product. The Industrial Materials segment, which generates the majority of revenue, sells chemicals and polymers, including industrial gases, petrochemicals, thermoplastics, polyethylene, and polypropylene. The Performance Products segment sells electronics and designed materials, including LED lighting and equipment, specialty chemicals, polyester and industrial films, and fibers. The Health Care segment sells pharmaceuticals to treat autoimmune diseases, diabetes and kidney diseases, central nervous system treatments, and vaccines. The majority of revenue comes from Japan.
Mitsubishi Chemical Group (Mitsubishi Chemical Group) Headlines
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