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.
Top Glove Bhd's Sloan Ratio for the quarter that ended in Aug. 2024 was -3.98%.
As of Aug. 2024, Top Glove Bhd has a Sloan Ratio of -3.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Top Glove Bhd Sloan Ratio % Historical Data
The historical data trend for Top Glove Bhd'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 Top Glove Bhd's Sloan Ratio %
For the Medical Instruments & Supplies subindustry, Top Glove Bhd'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.
Top Glove Bhd's Sloan Ratio % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Top Glove Bhd's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Top Glove Bhd's Sloan Ratio % falls into.
Top Glove Bhd 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.
Top Glove Bhd's Sloan Ratio for the fiscal year that ended in Aug. 2024 is calculated as
Top Glove Bhd's Net Income for the trailing twelve months (TTM) ended in Aug. 2024 was -13.254 (Nov. 2023 ) + -11.168 (Feb. 2024 ) + 17.88 (May. 2024 ) + 1.485 (Aug. 2024 ) = S$-5.1 Mil.
Top Glove Bhd's Cash Flow from Operations for the trailing twelve months (TTM) ended in Aug. 2024 was 5.031 (Nov. 2023 ) + -0.361 (Feb. 2024 ) + 10.038 (May. 2024 ) + -9.109 (Aug. 2024 ) = S$5.6 Mil.
Top Glove Bhd's Cash Flow from Investing for the trailing twelve months (TTM) ended in Aug. 2024 was -2.414 (Nov. 2023 ) + 1.918 (Feb. 2024 ) + 47.347 (May. 2024 ) + 24.972 (Aug. 2024 ) = S$71.8 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.
Top Glove Bhd (SGX:BVA) 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 Aug. 2024, Top Glove Bhd has a Sloan Ratio of -3.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Top Glove Bhd Sloan Ratio % Related Terms
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Top Glove Corp Bhd manufactures and sells gloves through several product lines to a diverse group of world-wide customers. Some of the different glove options include latex, nitrile, vinyl, PE, Polychloroprene, Polyisoprene, Flexylon, HDPE and surgical. Top Glove's products are utilized in an array of end markets such as aerospace, food, Personal care, medical care, oral care and home care. Traditionally, the company has derived over half of its sales from its nitrile and powdered latex product lines, with customers in North America and Europe generating the majority demand.
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