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.
Sekisui Chemical Co's Sloan Ratio for the quarter that ended in Sep. 2024 was -0.16%.
As of Sep. 2024, Sekisui Chemical Co has a Sloan Ratio of -0.16%, indicating the company is in the safe zone and there is no funny business with accruals.
Sekisui Chemical Co Sloan Ratio % Historical Data
The historical data trend for Sekisui Chemical 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 Sekisui Chemical Co's Sloan Ratio %
For the Conglomerates subindustry, Sekisui Chemical 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.
Sekisui Chemical Co's Sloan Ratio % Distribution in the Conglomerates Industry
For the Conglomerates industry and Industrials sector, Sekisui Chemical Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sekisui Chemical Co's Sloan Ratio % falls into.
Sekisui Chemical 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.
Sekisui Chemical Co's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
Sekisui Chemical Co's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 97.11 (Dec. 2023 ) + 130.144 (Mar. 2024 ) + 150.209 (Jun. 2024 ) + 134.4 (Sep. 2024 ) = $512 Mil.
Sekisui Chemical Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 107.09 (Dec. 2023 ) + 279.531 (Mar. 2024 ) + 30.787 (Jun. 2024 ) + 373.98 (Sep. 2024 ) = $791 Mil.
Sekisui Chemical Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -65.224 (Dec. 2023 ) + -106.248 (Mar. 2024 ) + -38.116 (Jun. 2024 ) + -55.2 (Sep. 2024 ) = $-265 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.
Sekisui Chemical Co (OTCPK:SKSUF) 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 Sep. 2024, Sekisui Chemical Co has a Sloan Ratio of -0.16%, indicating the company is in the safe zone and there is no funny business with accruals.
Sekisui Chemical Co Sloan Ratio % Related Terms
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Sekisui Chemical Co Ltd is a Japanese diversified holding company that owns a high-performance-plastics company, a residential construction company, and an urban infrastructure company. The plastics part of the business focuses on the production of materials for electronics, transportation, and buildings. The residential construction segment builds single-family and multiunit housing in Japan. The company's unit construction method allows prebuilt modular components to be assembled at various plants, which reduces construction time on-site. Sekisui's urban infrastructure products and industrial piping are used in mass transit and buildings. High-performance plastics and residential construction account for the majority of the company's revenue.
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