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.
Discount Investment's Sloan Ratio for the quarter that ended in Dec. 2023 was -9.40%.
As of Dec. 2023, Discount Investment has a Sloan Ratio of -9.40%, indicating the company is in the safe zone and there is no funny business with accruals.
Discount Investment Sloan Ratio % Historical Data
The historical data trend for Discount Investment'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 Discount Investment's Sloan Ratio %
For the Telecom Services subindustry, Discount Investment'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.
Discount Investment's Sloan Ratio % Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Discount Investment's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Discount Investment's Sloan Ratio % falls into.
Discount Investment 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.
Discount Investment's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Discount Investment's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 100 (Mar. 2023 ) + -136 (Jun. 2023 ) + -364 (Sep. 2023 ) + -298 (Dec. 2023 ) = ₪-698 Mil.
Discount Investment's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 623 (Mar. 2023 ) + 457 (Jun. 2023 ) + 546 (Sep. 2023 ) + 486 (Dec. 2023 ) = ₪2,112 Mil.
Discount Investment's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 258 (Mar. 2023 ) + -330 (Jun. 2023 ) + 288 (Sep. 2023 ) + -259 (Dec. 2023 ) = ₪-43 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.
Discount Investment (XTAE:DISI) 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, Discount Investment has a Sloan Ratio of -9.40%, indicating the company is in the safe zone and there is no funny business with accruals.
Discount Investment Sloan Ratio % Related Terms
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Discount Investment (XTAE:DISI) Business Description
Discount Investment Corp Ltd is an Israel-based holding company. The company's main line of business is to invest in other enterprises in a variety of sectors. Its portfolio comprises of domestic and foreign companies which are well established or have a strong growth potential. Discount's investment areas include cellular communications, advanced technologies, retail and food, real estate and construction. It basically invests across three main segments, which are Cellcom, Shufersal and Property and Building Corporation. Shufersal is a retail chains in Israel,cellcom is a cellular operators in the country.
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