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.
Septeni Holdings Co's Sloan Ratio for the quarter that ended in Mar. 2024 was -0.01%.
Warning Sign:
When sloan ratio (36.78)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Mar. 2024, Septeni Holdings Co has a Sloan Ratio of -0.01%, indicating the company is in the safe zone and there is no funny business with accruals.
Septeni Holdings Co Sloan Ratio % Historical Data
The historical data trend for Septeni Holdings 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 Septeni Holdings Co's Sloan Ratio %
For the Advertising Agencies subindustry, Septeni 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.
Septeni Holdings Co's Sloan Ratio % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Septeni Holdings Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Septeni Holdings Co's Sloan Ratio % falls into.
Septeni 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.
Septeni Holdings Co's Sloan Ratio for the fiscal year that ended in Sep. 2022 is calculated as
Septeni Holdings Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 582.626 (Dec. 2022 ) + 1573.017 (Mar. 2023 ) + -124.617 (Jun. 2023 ) + 3489.202 (Mar. 2024 ) = 円5,520 Mil.
Septeni Holdings Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -63.908 (Dec. 2022 ) + 1476.675 (Mar. 2023 ) + 485.277 (Jun. 2023 ) + 3486.482 (Mar. 2024 ) = 円5,385 Mil.
Septeni Holdings Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -1147.056 (Dec. 2022 ) + 102.821 (Mar. 2023 ) + -648.687 (Jun. 2023 ) + 1835.585 (Mar. 2024 ) = 円143 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.
Septeni Holdings Co (TSE:4293) 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, Septeni Holdings Co has a Sloan Ratio of -0.01%, indicating the company is in the safe zone and there is no funny business with accruals.
Septeni Holdings Co Sloan Ratio % Related Terms
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Septeni Holdings Co (TSE:4293) Business Description
Septeni Holdings Co Ltd is a Japanese Internet marketing company, providing marketing support services based primarily on Internet ads. Its business activities are divided into two segments including Internet marketing business and Media content business. The Internet marketing business segment includes a social media business that provides marketing services for customers on various global social media networks. The company's media content segment plans, develops and operates media and content specializing in Manga art for mobile phone advertisements. Septeni's primary revenue source geographically is Japan and it also operates subsidiaries in the United Kingdom, South Korea, and the United States.
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