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ValueCommerce Co (TSE:2491) Sloan Ratio % : -1.98% (As of Mar. 2024)


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What is ValueCommerce Co Sloan Ratio %?

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.

ValueCommerce Co's Sloan Ratio for the quarter that ended in Mar. 2024 was -1.98%.

As of Mar. 2024, ValueCommerce Co has a Sloan Ratio of -1.98%, indicating the company is in the safe zone and there is no funny business with accruals.


ValueCommerce Co Sloan Ratio % Historical Data

The historical data trend for ValueCommerce 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.

* Premium members only.

ValueCommerce Co Sloan Ratio % Chart

ValueCommerce Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.36 -1.87 -9.07 -2.13 1.08

ValueCommerce Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.58 0.15 1.11 1.08 -1.98

Competitive Comparison of ValueCommerce Co's Sloan Ratio %

For the Advertising Agencies subindustry, ValueCommerce 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.


ValueCommerce Co's Sloan Ratio % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, ValueCommerce Co's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where ValueCommerce Co's Sloan Ratio % falls into.



ValueCommerce 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.

ValueCommerce Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2023 )-Cash Flow from Operations (A: Dec. 2023 )
-Cash Flow from Investing (A: Dec. 2023 ))/Total Assets (A: Dec. 2023 )
=(3400-3499
--404)/28351
=1.08%

ValueCommerce Co's Sloan Ratio for the quarter that ended in Mar. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Mar. 2024 )
=(3292-4246
--382)/28837
=-1.98%

ValueCommerce Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 829 (Jun. 2023 ) + 828 (Sep. 2023 ) + 722 (Dec. 2023 ) + 913 (Mar. 2024 ) = 円3,292 Mil.
ValueCommerce Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 1487 (Jun. 2023 ) + -114 (Sep. 2023 ) + 1473 (Dec. 2023 ) + 1400 (Mar. 2024 ) = 円4,246 Mil.
ValueCommerce Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -78 (Jun. 2023 ) + -101 (Sep. 2023 ) + -123 (Dec. 2023 ) + -80 (Mar. 2024 ) = 円-382 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.


ValueCommerce Co  (TSE:2491) 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.

According to How to Beat the Market with the Sloan Ratio:

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 Mar. 2024, ValueCommerce Co has a Sloan Ratio of -1.98%, indicating the company is in the safe zone and there is no funny business with accruals.


ValueCommerce Co Sloan Ratio % Related Terms

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ValueCommerce Co (TSE:2491) Business Description

Traded in Other Exchanges
N/A
Address
Nihonseimei Akasaka Building 5F, 8-1-19 Akasaka, Minato, Tokyo, JPN, 107-0052
ValueCommerce Co Ltd is a Japan-based information technology company engaged in the provision of internet advertising delivery services. The company's service portfolio comprises affiliate marketing service, StoreMatch service and Store's R8. The affiliate marketing service provides compensation based on the performances of advertising for e-commerce sites. The StoreMatch Service provides pay-per-click internet advertising for stores listing on online shopping malls. The Store's R8 service is a marketing automation system customized for Yahoo! shopping.

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