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Sembcorp Industries (SGX:U96) Sloan Ratio % : 2.19% (As of Dec. 2023)


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What is Sembcorp Industries Sloan Ratio %?

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.

Sembcorp Industries's Sloan Ratio for the quarter that ended in Dec. 2023 was 2.19%.

As of Dec. 2023, Sembcorp Industries has a Sloan Ratio of 2.19%, indicating the company is in the safe zone and there is no funny business with accruals.


Sembcorp Industries Sloan Ratio % Historical Data

The historical data trend for Sembcorp Industries'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.

* Premium members only.

Sembcorp Industries Sloan Ratio % Chart

Sembcorp Industries Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.20 -1.53 -5.84 3.63 2.19

Sembcorp Industries Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -5.84 1.65 3.63 2.46 2.19

Competitive Comparison of Sembcorp Industries's Sloan Ratio %

For the Conglomerates subindustry, Sembcorp Industries'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.


Sembcorp Industries's Sloan Ratio % Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Sembcorp Industries's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Sembcorp Industries's Sloan Ratio % falls into.



Sembcorp Industries 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.

Sembcorp Industries's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2023 )-Cash Flow from Operations (A: Dec. 2023 )
-Cash Flow from Investing (A: Dec. 2023 ))/Total Assets (A: Dec. 2023 )
=(942-1481
--878)/15497
=2.19%

Sembcorp Industries's Sloan Ratio for the quarter that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Dec. 2023 )
=(942-1481
--878)/15497
=2.19%

For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data. Sembcorp Industries's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 530 (Jun. 2023 ) + 412 (Dec. 2023 ) = S$942 Mil.
Sembcorp Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 742 (Jun. 2023 ) + 739 (Dec. 2023 ) = S$1,481 Mil.
Sembcorp Industries's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -751 (Jun. 2023 ) + -127 (Dec. 2023 ) = S$-878 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.


Sembcorp Industries  (SGX:U96) 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.

According to How to Beat the Market with the Sloan Ratio:

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, Sembcorp Industries has a Sloan Ratio of 2.19%, indicating the company is in the safe zone and there is no funny business with accruals.


Sembcorp Industries Sloan Ratio % Related Terms

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Sembcorp Industries (SGX:U96) Business Description

Traded in Other Exchanges
Address
30 Hill Street, Number 05-04, Singapore, SGP, 179360
Sembcorp Industries Ltd is an investment holding company engaged in the production and supply of utility services, and handling and storage of petroleum products and chemicals. Its business is divided into four segments: Energy, Urban, and Others/Corporate. The company's service portfolio includes power generation, process steam production, wastewater treatment, integrated solutions for offshore and marine industry such as specialized shipbuilding, and repairs & upgrades, and development and marketing of commercial and residential spaces, among others. A vast majority of the company's income is generated by the energy segment, and the majority of the company's revenue is earned in Singapore and India together.

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