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.
J D W Sugar Mills's Sloan Ratio for the quarter that ended in Mar. 2024 was 10.30%.
Warning Sign:
When sloan ratio (-34.72)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Mar. 2024, J D W Sugar Mills has a Sloan Ratio of 10.30%, indicating earnings are more likely to be made up of accruals.
J D W Sugar Mills Sloan Ratio % Historical Data
The historical data trend for J D W Sugar Mills'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 J D W Sugar Mills's Sloan Ratio %
For the Confectioners subindustry, J D W Sugar Mills'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.
J D W Sugar Mills's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, J D W Sugar Mills's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where J D W Sugar Mills's Sloan Ratio % falls into.
J D W Sugar Mills 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.
J D W Sugar Mills's Sloan Ratio for the fiscal year that ended in Sep. 2023 is calculated as
J D W Sugar Mills's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 538.321 (Jun. 2023 ) + 1189.792 (Sep. 2023 ) + 5342.415 (Dec. 2023 ) + 2940.376 (Mar. 2024 ) = ₨10,011 Mil.
J D W Sugar Mills's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 9507.527 (Jun. 2023 ) + 24140.123 (Sep. 2023 ) + 6852.904 (Dec. 2023 ) + -38208.703 (Mar. 2024 ) = ₨2,292 Mil.
J D W Sugar Mills's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -34.337 (Jun. 2023 ) + 138.276 (Sep. 2023 ) + -790.878 (Dec. 2023 ) + -4846.936 (Mar. 2024 ) = ₨-5,534 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.
J D W Sugar Mills (KAR:JDWS) 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, J D W Sugar Mills has a Sloan Ratio of 10.30%, indicating earnings are more likely to be made up of accruals.
J D W Sugar Mills Sloan Ratio % Related Terms
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J D W Sugar Mills Ltd engages in the manufacturing and sale of crystalline sugar, Rlectricity and managing Corporate Farms.. The company's operating segments include Sugar; Co-Generation Power; Corporate Farms and others. It generates maximum revenue from the Sugar segment. The Sugar segment is engaged in the production and sale of crystalline sugar and other related joint and by-products. Its Co-Generation Power segment includes the generation and sale of electricity to CPPA-G. The Corporate Farms segment includes managing corporate farms for the cultivation of sugarcane and a small number of other crops. The other segment involves Project under construction for manufacture / generation and sale of ethanol and energy. However, operation of paper pulp classified as disposal group.
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