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.
Shree Rama Multi-Tech's Sloan Ratio for the quarter that ended in Dec. 2024 was 0.00%.
As of Dec. 2024, Shree Rama Multi-Tech has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Shree Rama Multi-Tech Sloan Ratio % Historical Data
The historical data trend for Shree Rama Multi-Tech'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 Shree Rama Multi-Tech's Sloan Ratio %
For the Packaging & Containers subindustry, Shree Rama Multi-Tech'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.
Shree Rama Multi-Tech's Sloan Ratio % Distribution in the Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Shree Rama Multi-Tech's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Shree Rama Multi-Tech'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.
Shree Rama Multi-Tech's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
Shree Rama Multi-Tech's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was 33.453 (Mar. 2024 ) + 41.977 (Jun. 2024 ) + 52.883 (Sep. 2024 ) + 52.635 (Dec. 2024 ) = ₹181 Mil.
Shree Rama Multi-Tech's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was 0 (Mar. 2024 ) + 0 (Jun. 2024 ) + 0 (Sep. 2024 ) + 0 (Dec. 2024 ) = ₹0 Mil.
Shree Rama Multi-Tech's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was 0 (Mar. 2024 ) + 0 (Jun. 2024 ) + 0 (Sep. 2024 ) + 0 (Dec. 2024 ) = ₹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.
Shree Rama Multi-Tech (NSE:SHREERAMA) 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, Shree Rama Multi-Tech has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Shree Rama Multi-Tech Sloan Ratio % Related Terms
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Shree Rama Multi-Tech Ltd is an Indian based company operates in packaging and containers division. The company is primarily engaged in the manufacturing and sale of plastic packaging products. It offers products such as plastic laminated tubes, multilayer tubes, monolayer tubes, monolayer seamless tubes, labels and stickers, tarpaulin, paper cups, and others. Geographically it operates through India, however, its products are sold within India and to some other international countries such as Bulgaria, Kenya, Nigeria, Saudi Arabia, Shri Lanka, Nepal, Singapore, Tanzania, and Turkey.
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