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, Jardine Matheson Holdings has a Sloan Ratio of -1.73%, indicating the company is in the safe zone and there is no funny business with accruals.
Jardine Matheson Holdings 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 Jardine Matheson Holdings's Sloan Ratio %
For the Conglomerates subindustry, Jardine Matheson 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.
Jardine Matheson Holdings's Sloan Ratio % Distribution in the Conglomerates Industry
For the Conglomerates industry and Industrials sector, Jardine Matheson Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Jardine Matheson Holdings's Sloan Ratio % falls into.
Jardine Matheson 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.
Jardine Matheson Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Jardine Matheson Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 566 (Jun. 2023 ) + 120 (Dec. 2023 ) = $686 Mil.
Jardine Matheson Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 2746 (Jun. 2023 ) + 1838 (Dec. 2023 ) = $4,584 Mil.
Jardine Matheson Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 14 (Jun. 2023 ) + -2368 (Dec. 2023 ) = $-2,354 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.
Jardine Matheson Holdings (OTCPK:JARLF) 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, Jardine Matheson Holdings has a Sloan Ratio of -1.73%, indicating the company is in the safe zone and there is no funny business with accruals.
Jardine Matheson Holdings Sloan Ratio % Related Terms
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Jardine Matheson Holdings (Jardine Matheson Holdings) Business Description
Jardine Matheson Holdings Ltd is a conglomerate of businesses operating primarily in Greater China and Southeast Asia. The affiliates offer products and services in motor vehicles and related operations, property investment and development, food retailing, home furnishing, engineering and construction, transport services, insurance broking, restaurants, luxury hotels, financial services, heavy equipment, mining, and agribusiness. In terms of net income, the largest businesses within the group are Hong Kong Land and Dairy Farm, which are property investment firms and food retailers, respectively.
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