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.
Maruichi Steel Tube's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.00%.
As of Dec. 2023, Maruichi Steel Tube has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Maruichi Steel Tube Sloan Ratio % Historical Data
The historical data trend for Maruichi Steel Tube'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 Maruichi Steel Tube's Sloan Ratio %
For the Steel subindustry, Maruichi Steel Tube'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.
Maruichi Steel Tube's Sloan Ratio % Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Maruichi Steel Tube's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Maruichi Steel Tube's Sloan Ratio % falls into.
Maruichi Steel Tube 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.
Maruichi Steel Tube's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
Maruichi Steel Tube's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 4761 (Mar. 2023 ) + 6770 (Jun. 2023 ) + 7328 (Sep. 2023 ) + 6354 (Dec. 2023 ) = 円25,213 Mil.
Maruichi Steel Tube'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.
Maruichi Steel Tube'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.
Maruichi Steel Tube (TSE:5463) 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, Maruichi Steel Tube has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Maruichi Steel Tube Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Maruichi Steel Tube's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Maruichi Steel Tube (TSE:5463) Business Description
Maruichi Steel Tube Ltd is a Japan-based company that manufactures and sells steel tube and steel sheet coating. Japan, North America, and Asia excluding Japan are the three largest markets for the company. The company's product portfolio includes welded steel tubes, hot-dip galvanized steel sheet, lighting poles, and prepainted steel sheet. Its products are used in architecture, civil engineering, machinery, power generation plants, automobiles, motor cycles, medical equipment, fitness machines, office automation equipment, office and educational furniture, and others. It has plants across North America and Asia.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
TSE:5463 has been successfully added to your 