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.
Kritika Wires's Sloan Ratio for the quarter that ended in Mar. 2024 was 4.69%.
As of Mar. 2024, Kritika Wires has a Sloan Ratio of 4.69%, indicating the company is in the safe zone and there is no funny business with accruals.
Kritika Wires Sloan Ratio % Historical Data
The historical data trend for Kritika Wires'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 Kritika Wires's Sloan Ratio %
For the Steel subindustry, Kritika Wires'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.
Kritika Wires's Sloan Ratio % Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Kritika Wires's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Kritika Wires's Sloan Ratio % falls into.
Kritika Wires 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.
Kritika Wires's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Kritika Wires's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 34.604 (Sep. 2023 ) + 69.403 (Mar. 2024 ) = ₹104 Mil.
Kritika Wires's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -300.781 (Sep. 2023 ) + 439.645 (Mar. 2024 ) = ₹139 Mil.
Kritika Wires's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 68.811 (Sep. 2023 ) + -175.147 (Mar. 2024 ) = ₹-106 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.
Kritika Wires (NSE:KRITIKA) 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, Kritika Wires has a Sloan Ratio of 4.69%, indicating the company is in the safe zone and there is no funny business with accruals.
Kritika Wires Sloan Ratio % Related Terms
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Plot-BG-12, Bus Terminus and Commercial Complex, Unit no. 201, 2nd Floor, AA-I, New Town Pride Hotel Building, Opposite to NOVOTEL, Kolkata, WB, IND, 700156
Kritika Wires Ltd is engaged in the manufacturing of galvanized steel wires and wire products. The company is focused on exporting and supplying Industrial Steel. The company's products are used for the transmission and distribution of electricity, and the manufacturing of concrete slippers, poles, bridges, and other infrastructure facilities. The products of the company include Mild Steel Wire, GI Stay Wire, Spring Steel Wire, Barbed Wire, and others.
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