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.
Nissan Chemical's Sloan Ratio for the quarter that ended in Mar. 2024 was 7.13%.
As of Mar. 2024, Nissan Chemical has a Sloan Ratio of 7.13%, indicating the company is in the safe zone and there is no funny business with accruals.
Nissan Chemical Sloan Ratio % Historical Data
The historical data trend for Nissan Chemical'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 Nissan Chemical's Sloan Ratio %
For the Chemicals subindustry, Nissan Chemical'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.
Nissan Chemical's Sloan Ratio % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nissan Chemical's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Nissan Chemical's Sloan Ratio % falls into.
Nissan Chemical 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.
Nissan Chemical's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
Nissan Chemical's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 12236 (Jun. 2023 ) + 7261 (Sep. 2023 ) + 6475 (Dec. 2023 ) + 12061 (Mar. 2024 ) = 円38,033 Mil.
Nissan Chemical's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 12293 (Jun. 2023 ) + 23733 (Sep. 2023 ) + -2348 (Dec. 2023 ) + 23 (Mar. 2024 ) = 円33,701 Mil.
Nissan Chemical's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -5078 (Jun. 2023 ) + -3408 (Sep. 2023 ) + -3434 (Dec. 2023 ) + -6821 (Mar. 2024 ) = 円-18,741 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.
Nissan Chemical (TSE:4021) 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, Nissan Chemical has a Sloan Ratio of 7.13%, indicating the company is in the safe zone and there is no funny business with accruals.
Nissan Chemical Sloan Ratio % Related Terms
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Nissan Chemical Industries Ltd manufactures and sells chemicals, semiconductors, and pharmaceutical products. The firm organizes itself into six segments based on product type. The Performance Materials segment, which generates the most revenue of any segment, sells resins for liquid-crystal display screens and semiconductors. The Agrochemicals segment sells herbicides, insecticides, and fungicides to the agriculture industry. The Chemicals segment sells melamine, ammonia, and fine chemical products. The Pharmaceuticals segment sells anti-cholesterol agents under the Livalo brand. The other two segments are Trading and Other. The majority of revenue comes from Japan.
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