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.
JFE Holdings's Sloan Ratio for the quarter that ended in Mar. 2024 was 0.76%.
As of Mar. 2024, JFE Holdings has a Sloan Ratio of 0.76%, indicating the company is in the safe zone and there is no funny business with accruals.
JFE Holdings Sloan Ratio % Historical Data
The historical data trend for JFE 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 JFE Holdings's Sloan Ratio %
For the Steel subindustry, JFE 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.
JFE Holdings's Sloan Ratio % Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, JFE Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where JFE Holdings's Sloan Ratio % falls into.
JFE 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.
JFE Holdings's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
JFE Holdings's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 59603 (Jun. 2023 ) + 50489 (Sep. 2023 ) + 52831 (Dec. 2023 ) + 34498 (Mar. 2024 ) = 円197,421 Mil.
JFE Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -111112 (Jun. 2023 ) + 317487 (Sep. 2023 ) + -40469 (Dec. 2023 ) + 313061 (Mar. 2024 ) = 円478,967 Mil.
JFE Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -68616 (Jun. 2023 ) + -77538 (Sep. 2023 ) + -84467 (Dec. 2023 ) + -94638 (Mar. 2024 ) = 円-325,259 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.
JFE Holdings (TSE:5411) 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, JFE Holdings has a Sloan Ratio of 0.76%, indicating the company is in the safe zone and there is no funny business with accruals.
JFE Holdings Sloan Ratio % Related Terms
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JFE Holdings Inc is a Japan-based company operating through three subsidiaries, namely JFE Steel, JFE Engineering and JFE Shoji. JFE Steel produces and sells a wide range of steel products and raw materials, and also operates peripheral businesses such as transporting, maintenance and construction of equipment. JFE Engineering provides engineering services for energy, urban environment, recycle, steel construction and industrial machines and systems. JFE Shoji purchases, processes and sells steel products, raw materials for steel production, nonferrous metal products, food, etc. Steel manufacturing and trading account for majority of JFE's revenue. The company generates most of its sales from the Japanese market.
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