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.
mm2 Asia's Sloan Ratio for the quarter that ended in Sep. 2023 was -30.71%.
Warning Sign:
When sloan ratio (-29.85)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Sep. 2023, mm2 Asia has a Sloan Ratio of -30.71%, indicating earnings are more likely to be made up of accruals.
mm2 Asia Sloan Ratio % Historical Data
The historical data trend for mm2 Asia'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 mm2 Asia's Sloan Ratio %
For the Entertainment subindustry, mm2 Asia'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.
mm2 Asia's Sloan Ratio % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, mm2 Asia's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where mm2 Asia's Sloan Ratio % falls into.
mm2 Asia 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.
mm2 Asia'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.
mm2 Asia's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was -115.058 (Mar. 2023 ) + 2.963 (Sep. 2023 ) = S$-112.1 Mil.
mm2 Asia's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was 13.331 (Mar. 2023 ) + 24.293 (Sep. 2023 ) = S$37.6 Mil.
mm2 Asia's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was -1.09 (Mar. 2023 ) + -3.538 (Sep. 2023 ) = S$-4.6 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.
mm2 Asia (SGX:1B0) 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, mm2 Asia has a Sloan Ratio of -30.71%, indicating earnings are more likely to be made up of accruals.
mm2 Asia Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of mm2 Asia's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
mm2 Asia Ltd Asia Ltd's core business lies in film, TV, and online content production, distribution, and sponsorship. across the content, entertainment, cinema, event, and concert industries in Singapore, Malaysia, Hong Kong, Taiwan, China, and the United States of America. The company's reportable segments include Core business, Digital content production, Cinema operations, Concerts and events, and others. The Cinema operations segment refers to sales of cinema tickets and concessions, hall rental, and screen advertising. The Core business segment refers to the group's production and distribution of motion pictures, video and television programs, and sponsorship. It generates maximum revenue from the Core segment. Geographically, it derives a majority of its revenue from Singapore.
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