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.
Sapporo Holdings's Sloan Ratio for the quarter that ended in Mar. 2024 was 0.17%.
As of Mar. 2024, Sapporo Holdings has a Sloan Ratio of 0.17%, indicating the company is in the safe zone and there is no funny business with accruals.
Sapporo Holdings Sloan Ratio % Historical Data
The historical data trend for Sapporo Holdings'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 Sapporo Holdings's Sloan Ratio %
For the Beverages - Brewers subindustry, Sapporo Holdings'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.
Sapporo Holdings's Sloan Ratio % Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Sapporo Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sapporo Holdings's Sloan Ratio % falls into.
Sapporo Holdings 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.
Sapporo Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Sapporo Holdings's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -1508 (Jun. 2023 ) + 8162 (Sep. 2023 ) + 5666 (Dec. 2023 ) + -1977 (Mar. 2024 ) = 円10,343 Mil.
Sapporo Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 11069 (Jun. 2023 ) + 13605 (Sep. 2023 ) + 7273 (Dec. 2023 ) + 1658 (Mar. 2024 ) = 円33,605 Mil.
Sapporo Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -6134 (Jun. 2023 ) + -6275 (Sep. 2023 ) + -1218 (Dec. 2023 ) + -10778 (Mar. 2024 ) = 円-24,405 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.
Sapporo Holdings (TSE:2501) 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, Sapporo Holdings has a Sloan Ratio of 0.17%, indicating the company is in the safe zone and there is no funny business with accruals.
Sapporo Holdings Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Sapporo Holdings's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Sapporo Holdings Ltd primarily sells alcoholic beverages, food, and soft drinks. Alcoholic beverage sales in Japan, which consist mostly of beer sales under the Sapporo and Yebisu brand names, make up more than half of Sapporo's total revenue. Roughly a quarter of Sapporo's revenue is from its Food and Soft Drink business, which includes its Café de Crie coffee shops in addition to many brands and products. Sapporo has international food and beverage sales in North America and other parts of Asia. Sapporo's remaining revenue comes from its restaurants, which are in Japan and operate under brand names including Ginza Lion Beer Hall and Yebisu Bar, and its real estate business, which develops, leases, and manages commercial complexes and office buildings in Japan.
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