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.
Toyoda Gosei Co's Sloan Ratio for the quarter that ended in Dec. 2023 was -5.54%.
As of Dec. 2023, Toyoda Gosei Co has a Sloan Ratio of -5.54%, indicating the company is in the safe zone and there is no funny business with accruals.
Toyoda Gosei Co Sloan Ratio % Historical Data
The historical data trend for Toyoda Gosei 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 Toyoda Gosei Co's Sloan Ratio %
For the Auto Parts subindustry, Toyoda Gosei 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.
Toyoda Gosei Co's Sloan Ratio % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Toyoda Gosei Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Toyoda Gosei Co's Sloan Ratio % falls into.
Toyoda Gosei 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.
Toyoda Gosei Co's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
Toyoda Gosei Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 14.402 (Mar. 2023 ) + 82.174 (Jun. 2023 ) + 78.826 (Sep. 2023 ) + 125.106 (Dec. 2023 ) = $301 Mil.
Toyoda Gosei Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 190.417 (Mar. 2023 ) + 311.967 (Jun. 2023 ) + 167.628 (Sep. 2023 ) + 214.444 (Dec. 2023 ) = $884 Mil.
Toyoda Gosei Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -90.884 (Mar. 2023 ) + -87.268 (Jun. 2023 ) + -53.617 (Sep. 2023 ) + -8.209 (Dec. 2023 ) = $-240 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.
Toyoda Gosei Co (OTCPK:TGOSY) 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, Toyoda Gosei Co has a Sloan Ratio of -5.54%, indicating the company is in the safe zone and there is no funny business with accruals.
Toyoda Gosei Co Sloan Ratio % Related Terms
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Toyoda Gosei Co (Toyoda Gosei Co) Business Description
Toyoda Gosei Co Ltd is a manufacturer of resins and rubber parts for automobiles. The company's products fall in three categories: automotive parts, LEDs, and general industry products. The automotive parts segment, making up the lion's share of Toyoda Gosei's generated revenue, produces weather strips, fuel tank and engine peripheral parts, chassis and drivetrain parts, interior and exterior parts, and safety systems such as airbags. In its other business segments, the company produces LEDs for crystal displays, LED light solutions and glass-encapsulated LEDs, air conditioning products, home construction components, and industrial and construction machinery parts.
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