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.
As of Jun. 2024, Broadway Industrial Group has a Sloan Ratio of 3.95%, indicating the company is in the safe zone and there is no funny business with accruals.
Broadway Industrial Group Sloan Ratio % Historical Data
* 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 Broadway Industrial Group's Sloan Ratio %
For the Computer Hardware subindustry, Broadway Industrial Group'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.
Broadway Industrial Group's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Broadway Industrial Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Broadway Industrial Group's Sloan Ratio % falls into.
Broadway Industrial Group 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.
Broadway Industrial Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Broadway Industrial Group's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was 4.296 (Dec. 2023 ) + 8.745 (Jun. 2024 ) = S$13.0 Mil.
Broadway Industrial Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was 11.736 (Dec. 2023 ) + -5.715 (Jun. 2024 ) = S$6.0 Mil.
Broadway Industrial Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was -2.111 (Dec. 2023 ) + -0.447 (Jun. 2024 ) = S$-2.6 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.
Broadway Industrial Group (SGX:B69) 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 Jun. 2024, Broadway Industrial Group has a Sloan Ratio of 3.95%, indicating the company is in the safe zone and there is no funny business with accruals.
Broadway Industrial Group Sloan Ratio % Related Terms
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Broadway Industrial Group Ltd is a manufacturer of precision machined components. The company provides actuator arms, assemblies, and other related parts mainly for the hard disk drive (HDD) industry. Its operating segments are; the HDD segment which generates key revenue and consists of the manufacturing and distribution of actuator arms and related assembly for the hard disk industry; The PE segment comprises the manufacturing and distribution of precision diecasting and machining parts for telecommunications equipment, industrial applications, and automotive industries, and others segment comprises investment holding. Geographically, the company generates a majority of its revenue from Thailand followed by the People's Republic of China, Vietnam, and other countries.
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