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, Kurita Water Industries has a Sloan Ratio of 2.50%, indicating the company is in the safe zone and there is no funny business with accruals.
Kurita Water Industries 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 Kurita Water Industries's Sloan Ratio %
For the Pollution & Treatment Controls subindustry, Kurita Water Industries'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.
Kurita Water Industries's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Kurita Water Industries's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Kurita Water Industries's Sloan Ratio % falls into.
Kurita Water Industries 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.
Kurita Water Industries's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
Kurita Water Industries's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -0.112 (Mar. 2023 ) + 40.288 (Jun. 2023 ) + 46.664 (Sep. 2023 ) + 64.661 (Dec. 2023 ) = $152 Mil.
Kurita Water Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 148.619 (Mar. 2023 ) + 31.601 (Jun. 2023 ) + 113.633 (Sep. 2023 ) + 81.858 (Dec. 2023 ) = $376 Mil.
Kurita Water Industries's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -123.361 (Mar. 2023 ) + -56.502 (Jun. 2023 ) + -58.183 (Sep. 2023 ) + -77.961 (Dec. 2023 ) = $-316 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.
Kurita Water Industries (OTCPK:KTWIF) 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, Kurita Water Industries has a Sloan Ratio of 2.50%, indicating the company is in the safe zone and there is no funny business with accruals.
Kurita Water Industries Sloan Ratio % Related Terms
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Kurita Water Industries (Kurita Water Industries) Business Description
Kurita Water Industries Ltd. is a provider of water treatment solutions in Japan. It operates through two segments, The Water Treatment Chemical segment, and The Water Treatment Equipment segment. The Water Treatment Chemical segment sells water treatment-related chemicals, for air conditioning, petroleum refining, pulp and paper processing-related applications. The Water Treatment Equipment segment manufactures and sells water production systems, drinking water treatment equipment, water and wastewater treatment equipment for various industries. Additionally, the segment is also responsible for supplying ultrapure water, the provision of maintenance service and the operation of water treatment facilities.
Kurita Water Industries (Kurita Water Industries) Headlines
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