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.
Uravi T & Wedge Lamps's Sloan Ratio for the quarter that ended in Sep. 2023 was 1.95%.
As of Sep. 2023, Uravi T & Wedge Lamps has a Sloan Ratio of 1.95%, indicating the company is in the safe zone and there is no funny business with accruals.
Uravi T & Wedge Lamps Sloan Ratio % Historical Data
The historical data trend for Uravi T & Wedge Lamps'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 Uravi T & Wedge Lamps's Sloan Ratio %
For the Auto Parts subindustry, Uravi T & Wedge Lamps'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.
Uravi T & Wedge Lamps's Sloan Ratio % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Uravi T & Wedge Lamps's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Uravi T & Wedge Lamps's Sloan Ratio % falls into.
Uravi T & Wedge Lamps 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.
Uravi T & Wedge Lamps's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Uravi T & Wedge Lamps's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was -0.33 (Mar. 2023 ) + 11.949 (Sep. 2023 ) = ₹11.6 Mil.
Uravi T & Wedge Lamps's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was 34.399 (Mar. 2023 ) + -8.538 (Sep. 2023 ) = ₹25.9 Mil.
Uravi T & Wedge Lamps's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was -8.668 (Mar. 2023 ) + -16.691 (Sep. 2023 ) = ₹-25.4 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.
Uravi T & Wedge Lamps (NSE:URAVI) 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 Sep. 2023, Uravi T & Wedge Lamps has a Sloan Ratio of 1.95%, indicating the company is in the safe zone and there is no funny business with accruals.
Uravi T & Wedge Lamps Sloan Ratio % Related Terms
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Uravi T & Wedge Lamps (NSE:URAVI) Business Description
Uravi T & Wedge Lamps Ltd is an Indian firm engaged in the manufacturing and distribution of automotive lamps and instrument cluster lighting for two-wheelers, four-wheelers, tractors, and Industrial applications for various Indian automobile manufacturers. The company's products offering includes Incandescent Head Lamps, Stop, Tail, and Indicators (Signaling Lamps), Wedge Base Lamps, Halogen Head Lamps, and others.
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