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.
As of Dec. 2023, Nissin Foods Holdings Co has a Sloan Ratio of 2.40%, indicating the company is in the safe zone and there is no funny business with accruals.
Nissin Foods Holdings Co Sloan Ratio % Historical Data
* 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 Nissin Foods Holdings Co's Sloan Ratio %
For the Packaged Foods subindustry, Nissin Foods Holdings 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.
Nissin Foods Holdings Co's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Nissin Foods Holdings Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Nissin Foods Holdings Co's Sloan Ratio % falls into.
Nissin Foods Holdings 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.
Nissin Foods Holdings Co's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
Nissin Foods Holdings Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 9837 (Mar. 2023 ) + 14031 (Jun. 2023 ) + 17979 (Sep. 2023 ) + 17040 (Dec. 2023 ) = 円58,887 Mil.
Nissin Foods Holdings Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 20007 (Mar. 2023 ) + 14247 (Jun. 2023 ) + 28754 (Sep. 2023 ) + 22894 (Dec. 2023 ) = 円85,902 Mil.
Nissin Foods Holdings Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -6685 (Mar. 2023 ) + -21547 (Jun. 2023 ) + -6195 (Sep. 2023 ) + -11535 (Dec. 2023 ) = 円-45,962 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.
Nissin Foods Holdings Co (TSE:2897) 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, Nissin Foods Holdings Co has a Sloan Ratio of 2.40%, indicating the company is in the safe zone and there is no funny business with accruals.
Nissin Foods Holdings Co Sloan Ratio % Related Terms
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Nissin Foods Holdings Co (TSE:2897) Business Description
Nissin Foods is Japan's largest instant noodle manufacturer and was the first in the world to invent and launch instant noodles. It also invented the first instant noodle product in cup containers. Cup Noodles is its global brand, marketed in Asia, the Americas, and Europe. Instant noodles account for more than three fourths of group sales and 80% of operating profits, while Japan remains the key contributor, representing roughly 75% of group sales and 85% of profits. Other products include frozen/chilled noodles, confectionery, and lactic acid drinks.
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