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.
Coupang's Sloan Ratio for the quarter that ended in Mar. 2024 was -0.86%.
As of Mar. 2024, Coupang has a Sloan Ratio of -0.86%, indicating the company is in the safe zone and there is no funny business with accruals.
Coupang Sloan Ratio % Historical Data
The historical data trend for Coupang'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.
For the Internet Retail subindustry, Coupang'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.
Coupang's Sloan Ratio % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Coupang's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Coupang's Sloan Ratio % falls into.
Coupang 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.
Coupang's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Coupang's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 145.192 (Jun. 2023 ) + 91.3 (Sep. 2023 ) + 1032.653 (Dec. 2023 ) + 5 (Mar. 2024 ) = $1,274 Mil.
Coupang's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 820.054 (Jun. 2023 ) + 721.639 (Sep. 2023 ) + 609.307 (Dec. 2023 ) + 212 (Mar. 2024 ) = $2,363 Mil.
Coupang's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -429.12 (Jun. 2023 ) + -151.59 (Sep. 2023 ) + -263.29 (Dec. 2023 ) + -117 (Mar. 2024 ) = $-961 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.
Coupang (NYSE:CPNG) 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 Mar. 2024, Coupang has a Sloan Ratio of -0.86%, indicating the company is in the safe zone and there is no funny business with accruals.
Coupang Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Coupang's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Coupang Inc is an e-commerce company. The company sells apparel, electronics, footwear, food products, furniture, nutritional supplements, and other products. Its segments include Product Commerce and Developing Offerings. The company generates maximum revenue from the Product Commerce segment. Product Commerce primarily includes core retail (owned inventory) and marketplace offerings (third-party merchants) and Rocket Fresh, fresh grocery offering, as well as advertising products associated with these offerings.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
CPNG has been successfully added to your 