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.
Korea Gas's Sloan Ratio for the quarter that ended in Dec. 2024 was -1.28%.
As of Dec. 2024, Korea Gas has a Sloan Ratio of -1.28%, indicating the company is in the safe zone and there is no funny business with accruals.
Korea Gas Sloan Ratio % Historical Data
The historical data trend for Korea Gas'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 Korea Gas's Sloan Ratio %
For the Utilities - Regulated Gas subindustry, Korea Gas'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.
Korea Gas's Sloan Ratio % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Korea Gas's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Korea Gas's Sloan Ratio % falls into.
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.
Korea Gas's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
Korea Gas's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was 406355.548 (Mar. 2024 ) + 252881.36 (Jun. 2024 ) + 155102.818 (Sep. 2024 ) + 332409.274 (Dec. 2024 ) = ₩1,146,749 Mil.
Korea Gas's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was 403065.102 (Mar. 2024 ) + 3205300.984 (Jun. 2024 ) + 1541246.341 (Sep. 2024 ) + -1519849.427 (Dec. 2024 ) = ₩3,629,763 Mil.
Korea Gas's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -492557.632 (Mar. 2024 ) + -434262.603 (Jun. 2024 ) + -308509.16 (Sep. 2024 ) + -511466.605 (Dec. 2024 ) = ₩-1,746,796 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.
Korea Gas (XKRX:036460) 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 Dec. 2024, Korea Gas has a Sloan Ratio of -1.28%, indicating the company is in the safe zone and there is no funny business with accruals.
Korea Gas Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Korea Gas's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Korea Gas Corp is a Korean natural gas utility company. The Government of Korea holds a majority stake in the firm. Korea Gas Corp holds a monopoly as the country's only natural gas distributor with a nationwide network of pipelines and storage tanks. The company segments its operations into Domestic Business and Overseas Business units. The Domestic Business division encompasses Korea Gas' liquefied natural gas (LNG) purchasing, supply, storage, and pipeline distributing activities. The company primarily buys natural gas from Middle Eastern and Southeast Asian sources. Korea Gas' total revenue is split fairly evenly between the sale of natural gas to urban consumers and to the power sector. Korean housing and industrial customers represent the majority of the firm's customer base.
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