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.
Sameer Africa's Sloan Ratio for the quarter that ended in Jun. 2023 was -9.09%.
As of Jun. 2023, Sameer Africa has a Sloan Ratio of -9.09%, indicating the company is in the safe zone and there is no funny business with accruals.
Sameer Africa Sloan Ratio % Historical Data
The historical data trend for Sameer Africa'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 Sameer Africa's Sloan Ratio %
For the Auto Parts subindustry, Sameer Africa'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.
Sameer Africa's Sloan Ratio % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Sameer Africa's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sameer Africa's Sloan Ratio % falls into.
Sameer Africa 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.
Sameer Africa's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Sameer Africa's Net Income for the trailing twelve months (TTM) ended in Jun. 2023 was 32.634 (Dec. 2022 ) + 24.232 (Jun. 2023 ) = KES56.9 Mil.
Sameer Africa's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2023 was 195.666 (Dec. 2022 ) + 43.174 (Jun. 2023 ) = KES238.8 Mil.
Sameer Africa's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2023 was -43.754 (Dec. 2022 ) + -18.318 (Jun. 2023 ) = KES-62.1 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.
Sameer Africa (NAI:SMER) 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 Jun. 2023, Sameer Africa has a Sloan Ratio of -9.09%, indicating the company is in the safe zone and there is no funny business with accruals.
Sameer Africa Sloan Ratio % Related Terms
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Sameer Africa Ltd engages in the manufacturing and distribution of tyres and allied products and the letting of investment property. The company operates through four business segments: sourcing and distribution, regional operations, Yana tyre centre, and rental business where the sourcing and distribution segment is engaged in the manufacturing and distribution of tires, tubes, and flaps, the regional operations segment engages in the buying and distribution of tires, tubes, and flaps in the Eastern Africa region, Yana tyre center segment is involved in the retailing of tires, tubes, and flaps, and the provision of tire-related services and the rental business segment is engaged in the letting of investment properties.
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