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, Ta Chen Stainless Pipe Co has a Sloan Ratio of -9.60%, indicating the company is in the safe zone and there is no funny business with accruals.
Ta Chen Stainless Pipe Co 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 Ta Chen Stainless Pipe Co's Sloan Ratio %
For the Steel subindustry, Ta Chen Stainless Pipe 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.
Ta Chen Stainless Pipe Co's Sloan Ratio % Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Ta Chen Stainless Pipe Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Ta Chen Stainless Pipe Co's Sloan Ratio % falls into.
Ta Chen Stainless Pipe 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.
Ta Chen Stainless Pipe Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Ta Chen Stainless Pipe Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 1632.193 (Jun. 2023 ) + 1264.109 (Sep. 2023 ) + 454.396 (Dec. 2023 ) + 1082.689 (Mar. 2024 ) = NT$4,433 Mil.
Ta Chen Stainless Pipe Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 6842.342 (Jun. 2023 ) + 8109.263 (Sep. 2023 ) + 6020.798 (Dec. 2023 ) + 4917.618 (Mar. 2024 ) = NT$25,890 Mil.
Ta Chen Stainless Pipe Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -3784.758 (Jun. 2023 ) + -1543.953 (Sep. 2023 ) + -1026.219 (Dec. 2023 ) + -1855.675 (Mar. 2024 ) = NT$-8,211 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.
Ta Chen Stainless Pipe Co (TPE:2027) 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, Ta Chen Stainless Pipe Co has a Sloan Ratio of -9.60%, indicating the company is in the safe zone and there is no funny business with accruals.
Ta Chen Stainless Pipe Co Sloan Ratio % Related Terms
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Ta Chen Stainless Pipe Co (TPE:2027) Business Description
Ta Chen Stainless Pipe Co Ltd is a Taiwan-based company that is primarily engaged in manufacturing and distributing of stainless steel, fasteners, steel strips, aluminum and nickel alloy coils, sheets, plates, long products, tubes, and PVFs. The company generates most of its sales from stainless steel products and fasteners. The company particularly specializes in manufacturing stainless tube and its accessories, which are used in petrochemical and food industries. Geographically, the company generates almost all of its revenue from the American market, where the company distributes its products through its warehouses in Los Angeles, Chicago, Houston, Atlanta, Florida, Philadelphia, Seattle, and Cleveland.
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