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.
* 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 Toyo Ventures Holdings Bhd's Sloan Ratio %
For the Specialty Chemicals subindustry, Toyo Ventures Holdings Bhd'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.
Toyo Ventures Holdings Bhd's Sloan Ratio % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Toyo Ventures Holdings Bhd's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Toyo Ventures Holdings Bhd's Sloan Ratio % falls into.
Toyo Ventures Holdings Bhd 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.
Toyo Ventures Holdings Bhd's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 1.994 (Jun. 2023 ) + -0.853 (Sep. 2023 ) + 1.006 (Dec. 2023 ) + -12.985 (Mar. 2024 ) = RM-10.84 Mil.
Toyo Ventures Holdings Bhd's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 6.978 (Jun. 2023 ) + 77.854 (Sep. 2023 ) + 1.024 (Dec. 2023 ) + 2.591 (Mar. 2024 ) = RM88.45 Mil.
Toyo Ventures Holdings Bhd's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 0.025 (Jun. 2023 ) + -3.672 (Sep. 2023 ) + -2.772 (Dec. 2023 ) + -1.463 (Mar. 2024 ) = RM-7.88 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.
Toyo Ventures Holdings Bhd (XKLS:7173) 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, Toyo Ventures Holdings Bhd has a Sloan Ratio of -15.73%, indicating there is a warning stage of accrual build up.
Toyo Ventures Holdings Bhd Sloan Ratio % Related Terms
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Toyo Ventures Holdings Bhd (XKLS:7173) Business Description
Toyo Ventures Holdings Bhd formerly Toyo Ink Group Bhd is a Malaysia-based investment holding company engaged in the manufacturing business and operation of power plant business. The company operates in three reporting segments: Manufacturing, Trading and investment holding, and Energy. The manufacturing segment includes Manufacturing printing ink, color pigment, colorants for plastic, EDM cut-the-wire, and graphic art. The Trading and investment holding segment includes Investment holding of the investments in subsidiary companies and property investment. The energy segment includes Investment and development of the thermal-electric power plant project in Vietnam. The majority of revenue is derived from the manufacturing segment.
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