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.
Zoomcar Holdings's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.00%.
Warning Sign:
When sloan ratio (-180.25)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2023, Zoomcar Holdings has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Zoomcar Holdings Sloan Ratio % Historical Data
The historical data trend for Zoomcar Holdings'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 Zoomcar Holdings's Sloan Ratio %
For the Rental & Leasing Services subindustry, Zoomcar Holdings'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.
Zoomcar Holdings's Sloan Ratio % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Zoomcar Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Zoomcar Holdings's Sloan Ratio % falls into.
Zoomcar Holdings 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.
Zoomcar Holdings's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
Zoomcar Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -8.713 (Dec. 2022 ) + -29.858 (Mar. 2023 ) + -28.781 (Jun. 2023 ) + 14.425 (Dec. 2023 ) = $-52.93 Mil.
Zoomcar Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 0 (Dec. 2022 ) + -6.877 (Mar. 2023 ) + -6.436 (Jun. 2023 ) + 0 (Dec. 2023 ) = $-13.31 Mil.
Zoomcar Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 0 (Dec. 2022 ) + -0.031 (Mar. 2023 ) + -0.146 (Jun. 2023 ) + 0 (Dec. 2023 ) = $-0.18 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.
Zoomcar Holdings (NAS:ZCAR) 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. 2023, Zoomcar Holdings has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Zoomcar Holdings Sloan Ratio % Related Terms
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Zoomcar Holdings (Zoomcar Holdings) Business Description
Zoomcar Holdings Inc is India's largest marketplace for cars on rent. Zoomcar is a leading emerging-market-focused peer-to-peer car-sharing marketplace, with approximately 21,000 vehicles registered through its platform. The Company derives its revenue principally from short-term self-drive rentals and vehicle subscriptions. The self-drive rental business generates the majority of revenue. Geographically The company operates in India, Egypt, Indonesia, Vietnam, and the Philippines, Out of which the majority of revenue is derived from India.
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