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.
Mudajaya Group Bhd's Sloan Ratio for the quarter that ended in Mar. 2024 was 3.93%.
As of Mar. 2024, Mudajaya Group Bhd has a Sloan Ratio of 3.93%, indicating the company is in the safe zone and there is no funny business with accruals.
Mudajaya Group Bhd Sloan Ratio % Historical Data
The historical data trend for Mudajaya Group Bhd'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 Mudajaya Group Bhd's Sloan Ratio %
For the Engineering & Construction subindustry, Mudajaya Group Bhd'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.
Mudajaya Group Bhd's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Mudajaya Group Bhd's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Mudajaya Group Bhd's Sloan Ratio % falls into.
Mudajaya Group Bhd 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.
Mudajaya Group Bhd's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Mudajaya Group Bhd's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -24.893 (Jun. 2023 ) + -4.956 (Sep. 2023 ) + -17.787 (Dec. 2023 ) + -10.066 (Mar. 2024 ) = RM-57.7 Mil.
Mudajaya Group Bhd's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 122.709 (Jun. 2023 ) + 90.143 (Sep. 2023 ) + -181.743 (Dec. 2023 ) + -138.706 (Mar. 2024 ) = RM-107.6 Mil.
Mudajaya Group Bhd's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -51.701 (Jun. 2023 ) + -69.864 (Sep. 2023 ) + 10.913 (Dec. 2023 ) + 78.401 (Mar. 2024 ) = RM-32.3 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.
Mudajaya Group Bhd (XKLS:5085) 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, Mudajaya Group Bhd has a Sloan Ratio of 3.93%, indicating the company is in the safe zone and there is no funny business with accruals.
Mudajaya Group Bhd Sloan Ratio % Related Terms
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Mudajaya Group Bhd (XKLS:5085) Business Description
Mudajaya Group Bhd along with its subsidiaries, the firm operates in four reportable segments including Construction contracts, Property, Power, Trading, and manufacturing. The construction contracts segment is engaged in undertaking engineering, construction works, and equipment procurement. The property segment develops residential and commercial properties. The power segment is engaged in the sale of power energy. And Trading and manufacturing segment is engaged in the sales and manufacturing of construction-related products. It operates in Malaysia, Indonesia, India, the Republic of Mauritius, and Negara Brunei Darussalam. The company generates the majority of its revenue from the Construction contracts segment.
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