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 Dec. 2023, Kaken Pharmaceutical Co has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Kaken Pharmaceutical 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 Kaken Pharmaceutical Co's Sloan Ratio %
For the Drug Manufacturers - Specialty & Generic subindustry, Kaken Pharmaceutical 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.
Kaken Pharmaceutical Co's Sloan Ratio % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Kaken Pharmaceutical Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Kaken Pharmaceutical Co's Sloan Ratio % falls into.
Kaken Pharmaceutical 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.
Kaken Pharmaceutical Co's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
Kaken Pharmaceutical Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -3709 (Mar. 2023 ) + 2510 (Jun. 2023 ) + 1558 (Sep. 2023 ) + 2607 (Dec. 2023 ) = 円2,966 Mil.
Kaken Pharmaceutical Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 0 (Mar. 2023 ) + 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) = 円0 Mil.
Kaken Pharmaceutical Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 0 (Mar. 2023 ) + 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) = 円0 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.
Kaken Pharmaceutical Co (TSE:4521) 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, Kaken Pharmaceutical Co has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Kaken Pharmaceutical Co Sloan Ratio % Related Terms
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Kaken Pharmaceutical Co (TSE:4521) Business Description
Kaken Pharmaceutical Co is a specialty and generic drug manufacturing company. The company organizes its segments between pharmaceutical and real estate activities. The pharmaceutical segment consists of pharmaceutical drugs, medical devices, and agrochemicals. In the real estate segment, the majority of revenue is generated through commercial facility rental fees. Sales in Japan constitute more than 90% of revenue. Kaken considers merger and acquisition investment to be a potential component of its operational growth strategy for expanding its research, development, manufacturing, and marketing capabilities.
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