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.
Atam Valves's Sloan Ratio for the quarter that ended in Dec. 2024 was 0.00%.
As of Dec. 2024, Atam Valves has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Atam Valves Sloan Ratio % Historical Data
The historical data trend for Atam Valves'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 Atam Valves's Sloan Ratio %
For the Specialty Industrial Machinery subindustry, Atam Valves'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.
Atam Valves's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Atam Valves's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Atam Valves's Sloan Ratio % falls into.
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.
Atam Valves's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
Atam Valves's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was 9.875 (Dec. 2023 ) + 26.845 (Mar. 2024 ) + 9.308 (Jun. 2024 ) + 15.755 (Dec. 2024 ) = ₹61.8 Mil.
Atam Valves's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was 0 (Dec. 2023 ) + 0 (Mar. 2024 ) + 0 (Jun. 2024 ) + 0 (Dec. 2024 ) = ₹0.0 Mil.
Atam Valves's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was 0 (Dec. 2023 ) + 0 (Mar. 2024 ) + 0 (Jun. 2024 ) + 0 (Dec. 2024 ) = ₹0.0 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.
Atam Valves (NSE:ATAM) 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. 2024, Atam Valves has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Atam Valves Sloan Ratio % Related Terms
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Atam Valves Ltd is engaged in the business of manufacturing bronze, cast iron, cast steel, carbon steel, stainless steel, forged steel as well as gun metal industrial valves of various types and sizes ranging from 8 mm up to 350 mm. It manufactures boiler mountings and supplies various types of valves and fittings, steam traps, and strainers. The company's products range includes Air Valves; Ball Valves; Butterfly Valves; Check Valves; Cocks; Foot Valves; Gate Valves; Globe Valves; Injectors; Moisture Separators; Needle Valves; Non Return Valves; Parallel Slide Blow Off Valves; Plug Valves; Pressure Reducing Valves; Safety Valves; Sight Indicators; Steam Stop Valves; Steam Traps; Strainers; Water Level Gauges; and Wheel Valves.
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