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.
Jumia Technologies AG's Sloan Ratio for the quarter that ended in Dec. 2023 was -49.34%.
Warning Sign:
When sloan ratio (-49.34)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2023, Jumia Technologies AG has a Sloan Ratio of -49.34%, indicating earnings are more likely to be made up of accruals.
Jumia Technologies AG Sloan Ratio % Historical Data
The historical data trend for Jumia Technologies AG'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 Jumia Technologies AG's Sloan Ratio %
For the Internet Retail subindustry, Jumia Technologies AG'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.
Jumia Technologies AG's Sloan Ratio % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Jumia Technologies AG's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Jumia Technologies AG's Sloan Ratio % falls into.
Jumia Technologies AG 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.
Jumia Technologies AG's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Jumia Technologies AG's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -31.761 (Mar. 2023 ) + -31.877 (Jun. 2023 ) + -22.871 (Sep. 2023 ) + -17.646 (Dec. 2023 ) = $-104.2 Mil.
Jumia Technologies AG's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -18.974 (Mar. 2023 ) + -20.725 (Jun. 2023 ) + -24.01 (Sep. 2023 ) + -9.258 (Dec. 2023 ) = $-73.0 Mil.
Jumia Technologies AG's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 38.438 (Mar. 2023 ) + 15.384 (Jun. 2023 ) + 12.803 (Sep. 2023 ) + -4.091 (Dec. 2023 ) = $62.5 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.
Jumia Technologies AG (NYSE:JMIA) 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, Jumia Technologies AG has a Sloan Ratio of -49.34%, indicating earnings are more likely to be made up of accruals.
Jumia Technologies AG Sloan Ratio % Related Terms
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Jumia Technologies AG (Jumia Technologies AG) Business Description
Jumia Technologies AG is the pan-African e-commerce platform. The company's platform consists of a marketplace, which connects sellers with consumers. Its logistics service enables the shipment and delivery of packages from sellers to consumers, and the company's payment service facilitates transactions among participants active on its platform in selected markets. Jumia generates revenue from Sales of goods, Commissions, Fulfillment, Value-added services, and Marketing & Advertising. Its geographical segments are West Africa, North Africa, East & South Africa, Europe, and United Arab Emirates. The firm generates majority of its revenue from the West Africa segment.
Jumia Technologies AG (Jumia Technologies AG) Headlines
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