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.
The Japan Steel Works's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.00%.
As of Dec. 2023, The Japan Steel Works has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
The Japan Steel Works Sloan Ratio % Historical Data
The historical data trend for The Japan Steel Works'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 The Japan Steel Works's Sloan Ratio %
For the Specialty Industrial Machinery subindustry, The Japan Steel Works'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.
The Japan Steel Works's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, The Japan Steel Works's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where The Japan Steel Works's Sloan Ratio % falls into.
The Japan Steel Works 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.
The Japan Steel Works's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
The Japan Steel Works's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 64.752 (Mar. 2023 ) + 17.346 (Jun. 2023 ) + 15.631 (Sep. 2023 ) + 29.205 (Dec. 2023 ) = $127 Mil.
The Japan Steel Works's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 0 (Mar. 2023 ) + 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) = $0 Mil.
The Japan Steel Works's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 0 (Mar. 2023 ) + 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) = $0 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.
The Japan Steel Works (OTCPK:JPSWY) 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, The Japan Steel Works has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
The Japan Steel Works Sloan Ratio % Related Terms
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The Japan Steel Works (The Japan Steel Works) Business Description
The Japan Steel Works Ltd is a Japan-based company that primarily operates through two segments. The steel and energy products segment provides steel components for turbine shafts, steel components for nuclear reactors, steel casting for power plant turbines, oil refining equipment, high-pressure steel tankers, wind turbine systems, and various other steel products. The industrial machinery products segment offers polyolefin pelletizers, injection molding machines, extruders, film and sheet machines, blow molding machines, defense equipment, and other industrial machinery and related services and solutions. The company generates the majority of its sales from Japan and China.
The Japan Steel Works (The Japan Steel Works) Headlines
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