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.
As of Dec. 2023, Sohgo Security Services Co has a Sloan Ratio of 0.14%, indicating the company is in the safe zone and there is no funny business with accruals.
Sohgo Security Services Co Sloan Ratio % Historical Data
* 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 Sohgo Security Services Co's Sloan Ratio %
For the Security & Protection Services subindustry, Sohgo Security Services 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.
Sohgo Security Services Co's Sloan Ratio % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Sohgo Security Services Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sohgo Security Services Co's Sloan Ratio % falls into.
Sohgo Security Services 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.
Sohgo Security Services Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 8167 (Mar. 2023 ) + 5195 (Jun. 2023 ) + 6657 (Sep. 2023 ) + 6590 (Dec. 2023 ) = 円26,609 Mil.
Sohgo Security Services Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 14108 (Mar. 2023 ) + 18287 (Jun. 2023 ) + 16470 (Sep. 2023 ) + -5209 (Dec. 2023 ) = 円43,656 Mil.
Sohgo Security Services Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -4870 (Mar. 2023 ) + -1839 (Jun. 2023 ) + -5519 (Sep. 2023 ) + -5580 (Dec. 2023 ) = 円-17,808 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.
Sohgo Security Services Co (TSE:2331) 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, Sohgo Security Services Co has a Sloan Ratio of 0.14%, indicating the company is in the safe zone and there is no funny business with accruals.
Sohgo Security Services Co Sloan Ratio % Related Terms
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Sohgo Security Services Co (TSE:2331) Business Description
Sohgo Security Services Co Ltd is a Japanese security services provider. The services and products offered include home security systems, personal security for senior citizens, children and women, life support such as housework contracting, listening-device inspection and long-term care, online security systems for corporations, electronic security systems with monitoring capabilities, ATM management systems, damage insurance, and housing complexes security services.
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