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.
PT Indosat Tbk's Sloan Ratio for the quarter that ended in Dec. 2024 was -1.56%.
As of Dec. 2024, PT Indosat Tbk has a Sloan Ratio of -1.56%, indicating the company is in the safe zone and there is no funny business with accruals.
PT Indosat Tbk Sloan Ratio % Historical Data
The historical data trend for PT Indosat Tbk'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 PT Indosat Tbk's Sloan Ratio %
For the Telecom Services subindustry, PT Indosat Tbk'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.
PT Indosat Tbk's Sloan Ratio % Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, PT Indosat Tbk's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where PT Indosat Tbk'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.
PT Indosat Tbk's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
PT Indosat Tbk's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was 82.44 (Mar. 2024 ) + 88.203 (Jun. 2024 ) + 74.518 (Sep. 2024 ) + 64.398 (Dec. 2024 ) = $310 Mil.
PT Indosat Tbk's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was 399.825 (Mar. 2024 ) + 206.559 (Jun. 2024 ) + 380.881 (Sep. 2024 ) + 224.491 (Dec. 2024 ) = $1,212 Mil.
PT Indosat Tbk's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -171.16 (Mar. 2024 ) + -123.359 (Jun. 2024 ) + -293.698 (Sep. 2024 ) + -203.046 (Dec. 2024 ) = $-791 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.
PT Indosat Tbk (OTCPK:PTITF) 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, PT Indosat Tbk has a Sloan Ratio of -1.56%, indicating the company is in the safe zone and there is no funny business with accruals.
PT Indosat Tbk Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of PT Indosat Tbk's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
PT Indosat Tbk is the provider of international long-distance and wireless services in Indonesia. The company operates under three reportable segments: Cellular, Midi and Fixed segment. Cellular, providing network coverage in all cities across Indonesia; fixed telecommunications, which provides services such as international calls and fixed lines; and multimedia interactive, data and internet, which offers products such as fixed connectivity, IT service and fixed Internet. The Cellular segment provides majority of the company's revenue.
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