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.
PT Adirana Armada Tbk's Sloan Ratio for the quarter that ended in Mar. 2024 was 0.88%.
As of Mar. 2024, PT Adirana Armada Tbk has a Sloan Ratio of 0.88%, indicating the company is in the safe zone and there is no funny business with accruals.
PT Adirana Armada Tbk Sloan Ratio % Historical Data
The historical data trend for PT Adirana Armada Tbk'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 PT Adirana Armada Tbk's Sloan Ratio %
For the Rental & Leasing Services subindustry, PT Adirana Armada Tbk'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.
PT Adirana Armada Tbk's Sloan Ratio % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, PT Adirana Armada Tbk's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where PT Adirana Armada Tbk's Sloan Ratio % falls into.
PT Adirana Armada Tbk 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.
PT Adirana Armada Tbk's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
PT Adirana Armada Tbk's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 17741.148 (Jun. 2023 ) + 48693.24 (Sep. 2023 ) + -14502.665 (Dec. 2023 ) + 71008.642 (Mar. 2024 ) = Rp122,940 Mil.
PT Adirana Armada Tbk's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 57589.198 (Jun. 2023 ) + -282765.092 (Sep. 2023 ) + 576489.232 (Dec. 2023 ) + 191161.174 (Mar. 2024 ) = Rp542,475 Mil.
PT Adirana Armada Tbk's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -27232.091 (Jun. 2023 ) + -180709.727 (Sep. 2023 ) + -119050.223 (Dec. 2023 ) + -160154.496 (Mar. 2024 ) = Rp-487,147 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.
PT Adirana Armada Tbk (ISX:ASSA) 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 Mar. 2024, PT Adirana Armada Tbk has a Sloan Ratio of 0.88%, indicating the company is in the safe zone and there is no funny business with accruals.
PT Adirana Armada Tbk Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of PT Adirana Armada Tbk's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
PT Adirana Armada Tbk (ISX:ASSA) Business Description
PT Adi Sarana Armada Tbk provides integrated transportation solutions in the form of vehicle rental services. The company is engaged in businesses inland transportation, including passenger transportation by means of buses, sedans, and other land vehicles, transporting goods, delivery, transportation management, expedition, and warehouses, and provides long and short-term rental services. The company's segment includes Vehicle lease, Autopool and Driver; Sale of the used vehicles; Logistics; Express; Auction, and others.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
ISX:ASSA has been successfully added to your 