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 Harum Energy Tbk's Sloan Ratio for the quarter that ended in Dec. 2023 was -4.32%.
As of Dec. 2023, PT Harum Energy Tbk has a Sloan Ratio of -4.32%, indicating the company is in the safe zone and there is no funny business with accruals.
PT Harum Energy Tbk Sloan Ratio % Historical Data
The historical data trend for PT Harum Energy 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 Harum Energy Tbk's Sloan Ratio %
For the Thermal Coal subindustry, PT Harum Energy 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 Harum Energy Tbk's Sloan Ratio % Distribution in the Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, PT Harum Energy Tbk's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where PT Harum Energy Tbk's Sloan Ratio % falls into.
PT Harum Energy 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 Harum Energy Tbk's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
PT Harum Energy Tbk's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 1551718.425 (Mar. 2023 ) + 715042.381 (Jun. 2023 ) + -672850.154 (Sep. 2023 ) + 674788.839 (Dec. 2023 ) = Rp2,268,699 Mil.
PT Harum Energy Tbk's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 2367476.902 (Mar. 2023 ) + 286786.284 (Jun. 2023 ) + 546949.84 (Sep. 2023 ) + -16325.536 (Dec. 2023 ) = Rp3,184,887 Mil.
PT Harum Energy Tbk's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 47038.658 (Mar. 2023 ) + -1595671.309 (Jun. 2023 ) + -1519808.844 (Sep. 2023 ) + 3238992.596 (Dec. 2023 ) = Rp170,551 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 Harum Energy Tbk (ISX:HRUM) 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, PT Harum Energy Tbk has a Sloan Ratio of -4.32%, indicating the company is in the safe zone and there is no funny business with accruals.
PT Harum Energy Tbk Sloan Ratio % Related Terms
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PT Harum Energy Tbk (ISX:HRUM) Business Description
PT Harum Energy Tbk is a holding company primarily engaged in coal mining and logistics business in East Kalimantan, Indonesia. The company's activity is breakdown into various segments which include Coal mining sectors; Rental and service sectors and Other sectors. It serves coal-fired power generating and manufacturing companies. The business of the group is amplifying to the geographical region of South Korea, Taiwan, Malaysia, China, India, Japan, and others of which South Korea accounts for a larger share of the revenue.
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