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.
Amano's Sloan Ratio for the quarter that ended in Mar. 2024 was -0.22%.
As of Mar. 2024, Amano has a Sloan Ratio of -0.22%, indicating the company is in the safe zone and there is no funny business with accruals.
Amano Sloan Ratio % Historical Data
The historical data trend for Amano'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.
For the Scientific & Technical Instruments subindustry, Amano'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.
Amano's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Amano's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Amano's Sloan Ratio % falls into.
Amano 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.
Amano's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
Amano's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 1557 (Jun. 2023 ) + 4000 (Sep. 2023 ) + 3537 (Dec. 2023 ) + 4047 (Mar. 2024 ) = 円13,141 Mil.
Amano's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 5993 (Jun. 2023 ) + 4373 (Sep. 2023 ) + 5689 (Dec. 2023 ) + 7716 (Mar. 2024 ) = 円23,771 Mil.
Amano's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -2648 (Jun. 2023 ) + -2594 (Sep. 2023 ) + -1659 (Dec. 2023 ) + -3320 (Mar. 2024 ) = 円-10,221 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.
Amano (TSE:6436) 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, Amano has a Sloan Ratio of -0.22%, indicating the company is in the safe zone and there is no funny business with accruals.
Amano Sloan Ratio % Related Terms
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Amano Corp offers information systems, time management products, parking management services, environmental solutions, and cleaning products. The company helps clients coordinate human resources, payroll, and time recorders with software and standardized machines. It offers solutions to accurately record the data on billing and documents, and can process a wide variety of information customized for each client. Parking lots and bicycle-parking systems ensure safety while increasing the level of convenience for parking lot users. Products geared toward environmental and cleaning applications include dust and fume collectors, hazardous-gas removal systems, and floor scrubbers and cleaners. The majority of sales derive from customers located in Japan.
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