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.
Nissan Motor Co's Sloan Ratio for the quarter that ended in Dec. 2023 was 1.49%.
As of Dec. 2023, Nissan Motor Co has a Sloan Ratio of 1.49%, indicating the company is in the safe zone and there is no funny business with accruals.
Nissan Motor Co Sloan Ratio % Historical Data
The historical data trend for Nissan Motor 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 Nissan Motor Co's Sloan Ratio %
For the Auto Manufacturers subindustry, Nissan Motor 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.
Nissan Motor Co's Sloan Ratio % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Nissan Motor Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Nissan Motor Co's Sloan Ratio % falls into.
Nissan Motor 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.
Nissan Motor Co's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
Nissan Motor Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 799.466 (Mar. 2023 ) + 746.155 (Jun. 2023 ) + 1290.101 (Sep. 2023 ) + 202.415 (Dec. 2023 ) = $3,038 Mil.
Nissan Motor Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 3422.851 (Mar. 2023 ) + 960.942 (Jun. 2023 ) + 923.17 (Sep. 2023 ) + 1607.206 (Dec. 2023 ) = $6,914 Mil.
Nissan Motor Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -1862.412 (Mar. 2023 ) + -1590.344 (Jun. 2023 ) + -1249.363 (Sep. 2023 ) + -1088.64 (Dec. 2023 ) = $-5,791 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.
Nissan Motor Co (OTCPK:NSANY) 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, Nissan Motor Co has a Sloan Ratio of 1.49%, indicating the company is in the safe zone and there is no funny business with accruals.
Nissan Motor Co Sloan Ratio % Related Terms
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Nissan Motor Co (Nissan Motor Co) Business Description
While Nissan sold 3.3 million vehicles last fiscal year, total calendar 2022 Renault-Nissan-Mitsubishi alliance sales volume of 6.5 million vehicles makes the group the fourth-largest vehicle seller in the world, behind Toyota at 10.3 million, Volkswagen at 8.5 million, and Hyundai/Kia with 6.8 million vehicles sold. Nissan's financial services subsidiary provides consumers with auto loans and leases but also finances Nissan's sales to its dealerships (known as floor-plan financing). Nissan is 43.4% owned by Renault, while Nissan in turn owns 15% of Renault. Nissan also owns a 34% stake in Mitsubishi Motors. Under a new alliance agreement expected to be completed before the end of December 2023, Nissan and Renault will have cross-shareholding capped at 15% voting rights for each company.
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