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.
Creditison Co's Sloan Ratio for the quarter that ended in Mar. 2024 was 8.58%.
As of Mar. 2024, Creditison Co has a Sloan Ratio of 8.58%, indicating the company is in the safe zone and there is no funny business with accruals.
Creditison Co Sloan Ratio % Historical Data
The historical data trend for Creditison 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 Creditison Co's Sloan Ratio %
For the Credit Services subindustry, Creditison 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.
Creditison Co's Sloan Ratio % Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Creditison Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Creditison Co's Sloan Ratio % falls into.
Creditison 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.
Creditison Co's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
Creditison Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 16950 (Jun. 2023 ) + 27059 (Sep. 2023 ) + 18047 (Dec. 2023 ) + 10930 (Mar. 2024 ) = 円72,986 Mil.
Creditison Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -53119 (Jun. 2023 ) + -21150 (Sep. 2023 ) + -171142 (Dec. 2023 ) + 32007 (Mar. 2024 ) = 円-213,404 Mil.
Creditison Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -11974 (Jun. 2023 ) + -31093 (Sep. 2023 ) + -33766 (Dec. 2023 ) + -8921 (Mar. 2024 ) = 円-85,754 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.
Creditison Co (TSE:8253) 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 Mar. 2024, Creditison Co has a Sloan Ratio of 8.58%, indicating the company is in the safe zone and there is no funny business with accruals.
Creditison Co Sloan Ratio % Related Terms
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Credit Saison Co Ltd is a consumer finance company operating primarily in Japan. Saison operates in five reportable business segments: credit services, leasing, finance, real estate, and entertainment. Of these, credit services make up the vast majority of revenue. The company is one of Japan's leading card companies. The company issues Visa, MasterCard, American Express, and affinity cards carrying the Saison brand to a multitude of cardholders. Saison also provides insurance and asset management. The company is affiliated with the Mizuho Financial Group.
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