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.
JL Mag Rare-Earth Co's Sloan Ratio for the quarter that ended in Mar. 2024 was 9.44%.
As of Mar. 2024, JL Mag Rare-Earth Co has a Sloan Ratio of 9.44%, indicating the company is in the safe zone and there is no funny business with accruals.
JL Mag Rare-Earth Co Sloan Ratio % Historical Data
The historical data trend for JL Mag Rare-Earth Co'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 JL Mag Rare-Earth Co's Sloan Ratio %
For the Metal Fabrication subindustry, JL Mag Rare-Earth 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.
JL Mag Rare-Earth Co's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, JL Mag Rare-Earth Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where JL Mag Rare-Earth Co's Sloan Ratio % falls into.
JL Mag Rare-Earth 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.
JL Mag Rare-Earth Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
JL Mag Rare-Earth Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 154.398 (Jun. 2023 ) + 161.663 (Sep. 2023 ) + 69.427 (Dec. 2023 ) + 101.693 (Mar. 2024 ) = ¥487 Mil.
JL Mag Rare-Earth Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 362.098 (Jun. 2023 ) + 37.843 (Sep. 2023 ) + 700.76 (Dec. 2023 ) + -615.182 (Mar. 2024 ) = ¥486 Mil.
JL Mag Rare-Earth Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -129.302 (Jun. 2023 ) + -172.152 (Sep. 2023 ) + -544.314 (Dec. 2023 ) + -248.411 (Mar. 2024 ) = ¥-1,094 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.
JL Mag Rare-Earth Co (SZSE:300748) 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, JL Mag Rare-Earth Co has a Sloan Ratio of 9.44%, indicating the company is in the safe zone and there is no funny business with accruals.
JL Mag Rare-Earth Co Sloan Ratio % Related Terms
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JL Mag Rare-Earth Co (SZSE:300748) Business Description
JL Mag Rare-Earth, or JL Mag, is a leading global producer of high-performance rare earth permanent magnets, or REPMs. JL Mag focuses on the production and sale of NdFeB PMs, the most widely used type of REPMs, mainly made from an alloy of neodymium (Nd), iron (Fe) and boron (B). The company is ranked first in the world by high-performance REPMs, according to Frost & Sullivan. JL Mag is also ranked first in the global grain boundary diffusion, or GBD, REPMs market. Its products have a wide array of applications, mainly in new energy vehicles, or NEVs, automotive parts, wind turbine generators, energy-saving variable-frequency air-conditioners, or VFACs.
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