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.
Choil Aluminum Co's Sloan Ratio for the quarter that ended in Sep. 2024 was 9.13%.
As of Sep. 2024, Choil Aluminum Co has a Sloan Ratio of 9.13%, indicating the company is in the safe zone and there is no funny business with accruals.
Choil Aluminum Co Sloan Ratio % Historical Data
The historical data trend for Choil Aluminum 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 Choil Aluminum Co's Sloan Ratio %
For the Aluminum subindustry, Choil Aluminum 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.
Choil Aluminum Co's Sloan Ratio % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Choil Aluminum Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Choil Aluminum Co's Sloan Ratio % falls into.
Choil Aluminum 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.
Choil Aluminum Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Choil Aluminum Co's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 2032.947 (Dec. 2023 ) + 2625.295 (Mar. 2024 ) + 3161.072 (Jun. 2024 ) + 768.191 (Sep. 2024 ) = ₩8,588 Mil.
Choil Aluminum Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 5752.116 (Dec. 2023 ) + -2647.703 (Mar. 2024 ) + -10599.974 (Jun. 2024 ) + 12164.887 (Sep. 2024 ) = ₩4,669 Mil.
Choil Aluminum Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -27767.604 (Dec. 2023 ) + -2141.273 (Mar. 2024 ) + -536.183 (Jun. 2024 ) + -3008.779 (Sep. 2024 ) = ₩-33,454 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.
Choil Aluminum Co (XKRX:018470) 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, Choil Aluminum Co has a Sloan Ratio of 9.13%, indicating the company is in the safe zone and there is no funny business with accruals.
Choil Aluminum Co Sloan Ratio % Related Terms
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Choil Aluminum Co Ltd engages in the production of aluminum products. Its products include coiled sheet, sheet and plate, embossed sheet, circled sheet and band. The company provides coiled sheets that are used in foil stock, condenser cases, electric wire covers, insulator covering materials, fin stock, and mold transformers; and sheets and plates for use in litho sheets, cosmetic caps, P.P. caps/closure sheets, name plates, and sound proofing walls. It also offers embossed sheets, which are used in exterior and interior decoration for construction; circled sheets for use in household goods and reflector for light applications; and bands for cosmetic caps and electrical and electronic parts.
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