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 Mar. 2024, PTwit Sumbermasrana Tbk has a Sloan Ratio of 5.08%, indicating the company is in the safe zone and there is no funny business with accruals.
PTwit Sumbermasrana Tbk 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 PTwit Sumbermasrana Tbk's Sloan Ratio %
For the Farm Products subindustry, PTwit Sumbermasrana Tbk'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.
PTwit Sumbermasrana Tbk's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, PTwit Sumbermasrana Tbk's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where PTwit Sumbermasrana Tbk's Sloan Ratio % falls into.
PTwit Sumbermasrana Tbk 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.
PTwit Sumbermasrana Tbk's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
PTwit Sumbermasrana Tbk's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -4181.982 (Jun. 2023 ) + 275358.621 (Sep. 2023 ) + -929.087 (Dec. 2023 ) + 276907.336 (Mar. 2024 ) = Rp547,155 Mil.
PTwit Sumbermasrana Tbk's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 930242.89 (Jun. 2023 ) + 128652.787 (Sep. 2023 ) + -259016.794 (Dec. 2023 ) + 438354.706 (Mar. 2024 ) = Rp1,238,234 Mil.
PTwit Sumbermasrana Tbk's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 96420.425 (Jun. 2023 ) + -64421.432 (Sep. 2023 ) + -1350772.457 (Dec. 2023 ) + 10674.464 (Mar. 2024 ) = Rp-1,308,099 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.
PTwit Sumbermasrana Tbk (ISX:SSMS) 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, PTwit Sumbermasrana Tbk has a Sloan Ratio of 5.08%, indicating the company is in the safe zone and there is no funny business with accruals.
PTwit Sumbermasrana Tbk Sloan Ratio % Related Terms
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PTwit Sumbermasrana Tbk (ISX:SSMS) Business Description
PT Sawit Sumbermas Sarana Tbk operates several palm oil plantations and mills in Southeast Asia. It acquired land by either purchasing, obtaining land permits, or through a licensing process. The company harvests and processes the crops into crude palm oil, palm kernels, and palm kernel oil. Performance and plantation management is consistently monitored by agronomists, plant engineers, and experienced management. To achieve optimal capacity at its mills, the company may purchase crude palm oil from local farmers. It markets, sells, and distributes products directly to consumers and implemented a system where its sales team negotiates the price and delivery terms for each sale.
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