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JTEKT (TSE:6473) Sloan Ratio % : -2.63% (As of Mar. 2024)


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What is JTEKT 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.

JTEKT's Sloan Ratio for the quarter that ended in Mar. 2024 was -2.63%.

As of Mar. 2024, JTEKT has a Sloan Ratio of -2.63%, indicating the company is in the safe zone and there is no funny business with accruals.


JTEKT Sloan Ratio % Historical Data

The historical data trend for JTEKT'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.

JTEKT Sloan Ratio % Chart

JTEKT Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.06 -2.98 -1.52 0.56 -2.63

JTEKT Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 1.11 -1.26 -0.91 -2.63 -

Competitive Comparison of JTEKT's Sloan Ratio %

For the Auto Parts subindustry, JTEKT'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.


JTEKT's Sloan Ratio % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, JTEKT's Sloan Ratio % distribution charts can be found below:

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



JTEKT 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.

JTEKT's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as

Sloan Ratio=(Net Income (A: Mar. 2024 )-Cash Flow from Operations (A: Mar. 2024 )
-Cash Flow from Investing (A: Mar. 2024 ))/Total Assets (A: Mar. 2024 )
=(40257-154461
--71352)/1628514
=-2.63%

JTEKT'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 )
=(40256-154461
--71352)/1628514
=-2.63%

JTEKT's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 14984 (Jun. 2023 ) + 8130 (Sep. 2023 ) + 13296 (Dec. 2023 ) + 3846 (Mar. 2024 ) = 円40,256 Mil.
JTEKT's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 41644 (Jun. 2023 ) + 47517 (Sep. 2023 ) + 40643 (Dec. 2023 ) + 24657 (Mar. 2024 ) = 円154,461 Mil.
JTEKT's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -34252 (Jun. 2023 ) + -12917 (Sep. 2023 ) + -13705 (Dec. 2023 ) + -10478 (Mar. 2024 ) = 円-71,352 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.


JTEKT  (TSE:6473) 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, JTEKT has a Sloan Ratio of -2.63%, indicating the company is in the safe zone and there is no funny business with accruals.


JTEKT Sloan Ratio % Related Terms

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JTEKT Business Description

Traded in Other Exchanges
Address
No. 7-1, Meieki 4-chome, Nakamura-ku, 15th floor, Aichi Prefecture, Nagoya, JPN, 450-8515
JTEKT Corp is a manufacturer of automotive parts, bearings, and machine tools. The company's largest business division by revenue produces steering systems and driveline components for automobiles and bearings to minimize energy loss used in wind generation, transportation, agriculture, and construction. The smaller machine tools and mechatronics division offers grinders, spindler and CNC machines, and production efficiency enhancement solutions. Jtekt's largest end market is Japan, while the company also generates sales in North America, Europe, and elsewhere in Asia.

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