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.
YASKAWA Electric's Sloan Ratio for the quarter that ended in Feb. 2024 was 3.72%.
As of Feb. 2024, YASKAWA Electric has a Sloan Ratio of 3.72%, indicating the company is in the safe zone and there is no funny business with accruals.
YASKAWA Electric Sloan Ratio % Historical Data
The historical data trend for YASKAWA Electric'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 YASKAWA Electric's Sloan Ratio %
For the Electrical Equipment & Parts subindustry, YASKAWA Electric'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.
YASKAWA Electric's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, YASKAWA Electric's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where YASKAWA Electric's Sloan Ratio % falls into.
YASKAWA Electric 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.
YASKAWA Electric's Sloan Ratio for the fiscal year that ended in Feb. 2024 is calculated as
YASKAWA Electric's Net Income for the trailing twelve months (TTM) ended in Feb. 2024 was 78.304 (May. 2023 ) + 79.564 (Aug. 2023 ) + 65.189 (Nov. 2023 ) + 98.509 (Feb. 2024 ) = €322 Mil.
YASKAWA Electric's Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2024 was 74.437 (May. 2023 ) + 42.461 (Aug. 2023 ) + 125.946 (Nov. 2023 ) + 101.762 (Feb. 2024 ) = €345 Mil.
YASKAWA Electric's Cash Flow from Investing for the trailing twelve months (TTM) ended in Feb. 2024 was -27.421 (May. 2023 ) + -49.517 (Aug. 2023 ) + -61.257 (Nov. 2023 ) + -46.593 (Feb. 2024 ) = €-185 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.
YASKAWA Electric (STU:YEC) 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 Feb. 2024, YASKAWA Electric has a Sloan Ratio of 3.72%, indicating the company is in the safe zone and there is no funny business with accruals.
YASKAWA Electric Sloan Ratio % Related Terms
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Yaskawa Electric manufactures motion control components (servo motors and inverters), industrial robots, and other motor-based products. It operates mainly in Asia, the Americas, and Europe as one of the leading players in the AC servo motor/controller, AC drives (inverter), and robotics markets. According to the company, it has the leading global share with AC Servo motors/controllers, where the company's cumulative AC servo motor shipments reached 20 million units in 2020, and it is also considered as one of the "big four" industrial robotics companies. The company was founded in 1915, and its head office is in Kitakyushu, Fukuoka Prefecture, Japan.
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