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.
Nippon Sheet Glass Co's Sloan Ratio for the quarter that ended in Mar. 2024 was -0.25%.
As of Mar. 2024, Nippon Sheet Glass Co has a Sloan Ratio of -0.25%, indicating the company is in the safe zone and there is no funny business with accruals.
Nippon Sheet Glass Co Sloan Ratio % Historical Data
The historical data trend for Nippon Sheet Glass Co'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 Nippon Sheet Glass Co's Sloan Ratio %
For the Auto Parts subindustry, Nippon Sheet Glass Co'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.
Nippon Sheet Glass Co's Sloan Ratio % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Nippon Sheet Glass Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Nippon Sheet Glass Co's Sloan Ratio % falls into.
Nippon Sheet Glass Co 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.
Nippon Sheet Glass Co's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
Nippon Sheet Glass Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 49.711 (Jun. 2023 ) + 18.56 (Sep. 2023 ) + 25.92 (Dec. 2023 ) + -19.156 (Mar. 2024 ) = $75 Mil.
Nippon Sheet Glass Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -124.054 (Jun. 2023 ) + 141.337 (Sep. 2023 ) + 109.945 (Dec. 2023 ) + 264.179 (Mar. 2024 ) = $391 Mil.
Nippon Sheet Glass Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -99.499 (Jun. 2023 ) + -53.346 (Sep. 2023 ) + -66.793 (Dec. 2023 ) + -79.716 (Mar. 2024 ) = $-299 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.
Nippon Sheet Glass Co (OTCPK:NPSGF) 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 Mar. 2024, Nippon Sheet Glass Co has a Sloan Ratio of -0.25%, indicating the company is in the safe zone and there is no funny business with accruals.
Nippon Sheet Glass Co Sloan Ratio % Related Terms
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Nippon Sheet Glass Co Ltd manufactures glass and glazing products for many industries. The architectural segment, which accounts for roughly 40% of the company's total revenue, sells flat glass and glazing products to commercial and residential markets and the solar energy sector. The automotive segment, which accounts for roughly half of the company's total revenue, supplies a wide range of automotive glazing to vehicle manufacturers for new vehicles and replacement markets. The technical glass segment sells thin glass and glass fiber products for small displays, lenses, printers, and engine timing belts. Nippon sells its products worldwide, with more than a third of its sales in Europe, roughly a third in Japan and the rest of Asia, and the remaining sales in the Americas.
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