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Lumbini Finance (XNEP:LFLC) Sloan Ratio % : 0.00% (As of Jan. 2018)


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What is Lumbini Finance 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.

Lumbini Finance's Sloan Ratio for the quarter that ended in Jan. 2018 was 0.00%.

As of Jan. 2018, Lumbini Finance has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.


Lumbini Finance Sloan Ratio % Historical Data

The historical data trend for Lumbini Finance'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.

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Lumbini Finance Sloan Ratio % Chart

Lumbini Finance Annual Data
Trend Jul10 Jul11 Jul12 Jul13 Jul14 Jul15 Jul16
Sloan Ratio %
Get a 7-Day Free Trial 3.66 -0.42 2.64 1.31 6.32

Lumbini Finance Quarterly Data
Jul12 Jan13 Apr13 Jul13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Oct17 Jan18
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 - - - - -

Competitive Comparison of Lumbini Finance's Sloan Ratio %

For the Banks - Regional subindustry, Lumbini Finance'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.


Lumbini Finance's Sloan Ratio % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Lumbini Finance's Sloan Ratio % distribution charts can be found below:

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



Lumbini Finance 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.

Lumbini Finance's Sloan Ratio for the fiscal year that ended in Jul. 2016 is calculated as

Sloan Ratio=(Net Income (A: Jul. 2016 )-Cash Flow from Operations (A: Jul. 2016 )
-Cash Flow from Investing (A: Jul. 2016 ))/Total Assets (A: Jul. 2016 )
=(174.382--92.641
-78.905)/2975.025
=6.32%

Lumbini Finance's Sloan Ratio for the quarter that ended in Jan. 2018 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Jan. 2018 )
=(167.62-0
-0)/24507.918
=0.68%

Lumbini Finance's Net Income for the trailing twelve months (TTM) ended in Jan. 2018 was 78.929 (Jan. 2017 ) + -55.107 (Apr. 2017 ) + 16.148 (Oct. 2017 ) + 127.65 (Jan. 2018 ) = NPR167.6 Mil.
Lumbini Finance's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2018 was 0 (Jan. 2017 ) + 0 (Apr. 2017 ) + 0 (Oct. 2017 ) + 0 (Jan. 2018 ) = NPR0.0 Mil.
Lumbini Finance's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2018 was 0 (Jan. 2017 ) + 0 (Apr. 2017 ) + 0 (Oct. 2017 ) + 0 (Jan. 2018 ) = NPR0.0 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.


Lumbini Finance  (XNEP:LFLC) 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 Jan. 2018, Lumbini Finance has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.


Lumbini Finance Sloan Ratio % Related Terms

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Lumbini Finance (XNEP:LFLC) Business Description

Traded in Other Exchanges
N/A
Address
Thamel, Kathmandu, NPL
Lumbini Finance Ltd is engaged in providing deposits and loan products. It offers saving deposits, fixed deposit, call deposit, provident fund, hire purchase, housing and term loan, project and personal loan and sector loan.

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