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.
Samsung Electronics Co's Sloan Ratio for the quarter that ended in Dec. 2023 was -2.79%.
As of Dec. 2023, Samsung Electronics Co has a Sloan Ratio of -2.79%, indicating the company is in the safe zone and there is no funny business with accruals.
Samsung Electronics 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 Samsung Electronics Co's Sloan Ratio %
For the Consumer Electronics subindustry, Samsung Electronics 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.
Samsung Electronics Co's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Samsung Electronics Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Samsung Electronics Co's Sloan Ratio % falls into.
Samsung Electronics 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.
Samsung Electronics Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Samsung Electronics Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 1401252 (Mar. 2023 ) + 1547018 (Jun. 2023 ) + 5501304 (Sep. 2023 ) + 6023827 (Dec. 2023 ) = ₩14,473,401 Mil.
Samsung Electronics Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 6291774 (Mar. 2023 ) + 8169915 (Jun. 2023 ) + 9730509 (Sep. 2023 ) + 19945229 (Dec. 2023 ) = ₩44,137,427 Mil.
Samsung Electronics Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 16471470 (Mar. 2023 ) + 4551094 (Jun. 2023 ) + -13423278 (Sep. 2023 ) + -24522103 (Dec. 2023 ) = ₩-16,922,817 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.
Samsung Electronics Co (XKRX:005935) 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, Samsung Electronics Co has a Sloan Ratio of -2.79%, indicating the company is in the safe zone and there is no funny business with accruals.
Samsung Electronics Co Sloan Ratio % Related Terms
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Samsung Electronics Co (XKRX:005935) Business Description
Samsung Electronics is a diversified electronics conglomerate that manufactures and sells a wide range of products, including smartphones, semiconductor chips, printers, home appliances, medical equipment, and telecom network equipment. More than half of its profit is generated from semiconductor business, and a further 25% is generated from its mobile handset business, although these percentages vary with the fortunes of each of these businesses. It is the largest smartphone and television manufacturer in the world, which helps provide a base demand for its component businesses, such as memory chips and displays, and is also the largest manufacturer of these globally.
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