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.
Sumitomo Chemical Co's Sloan Ratio for the quarter that ended in Dec. 2023 was 1.37%.
As of Dec. 2023, Sumitomo Chemical Co has a Sloan Ratio of 1.37%, indicating the company is in the safe zone and there is no funny business with accruals.
Sumitomo Chemical Co Sloan Ratio % Historical Data
The historical data trend for Sumitomo Chemical Co'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 Sumitomo Chemical Co's Sloan Ratio %
For the Chemicals subindustry, Sumitomo Chemical Co'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.
Sumitomo Chemical Co's Sloan Ratio % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sumitomo Chemical Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sumitomo Chemical Co's Sloan Ratio % falls into.
Sumitomo Chemical Co 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.
Sumitomo Chemical Co's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
Sumitomo Chemical Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -398.932 (Mar. 2023 ) + -234.532 (Jun. 2023 ) + -292.151 (Sep. 2023 ) + -232.196 (Dec. 2023 ) = $-1,158 Mil.
Sumitomo Chemical Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 84.473 (Mar. 2023 ) + -933.219 (Jun. 2023 ) + 112.32 (Sep. 2023 ) + -136.49 (Dec. 2023 ) = $-873 Mil.
Sumitomo Chemical Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -157.768 (Mar. 2023 ) + -95.071 (Jun. 2023 ) + -448.754 (Sep. 2023 ) + 13.738 (Dec. 2023 ) = $-688 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.
Sumitomo Chemical Co (OTCPK:SOMMY) 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. 2023, Sumitomo Chemical Co has a Sloan Ratio of 1.37%, indicating the company is in the safe zone and there is no funny business with accruals.
Sumitomo Chemical Co Sloan Ratio % Related Terms
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Sumitomo Chemical Co (Sumitomo Chemical Co) Business Description
Sumitomo Chemical Co Ltd manufactures and sells chemicals and chemical-based products. The firm is organized into six segments by product type. The petrochemicals and plastics segment, which generates more revenue than any other segment, sells multiple products including propylene and polypropylene used in automobile seat cushions and interior panels. The pharmaceutical segment sells medicine to treat diabetes, neurology, cancer, and infectious diseases. The IT-related chemicals segment sells compound semiconductors and polarizing films used in LCD displays for TVs and smartphones. The other three segments are health and crop sciences; energy and functional materials; and "others." The majority of revenue comes from Japan and China.
Sumitomo Chemical Co (Sumitomo Chemical Co) Headlines
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