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.
Ibiden Co's Sloan Ratio for the quarter that ended in Dec. 2023 was 7.60%.
As of Dec. 2023, Ibiden Co has a Sloan Ratio of 7.60%, indicating the company is in the safe zone and there is no funny business with accruals.
Ibiden Co Sloan Ratio % Historical Data
The historical data trend for Ibiden Co'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 Ibiden Co's Sloan Ratio %
For the Electronic Components subindustry, Ibiden 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.
Ibiden Co's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Ibiden Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Ibiden Co's Sloan Ratio % falls into.
Ibiden 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.
Ibiden Co's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
Ibiden Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 8132 (Mar. 2023 ) + 7288 (Jun. 2023 ) + 10604 (Sep. 2023 ) + 9503 (Dec. 2023 ) = 円35,527 Mil.
Ibiden Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 29914 (Mar. 2023 ) + 5208 (Jun. 2023 ) + 29117 (Sep. 2023 ) + 3090 (Dec. 2023 ) = 円67,329 Mil.
Ibiden Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -40731 (Mar. 2023 ) + -46300 (Jun. 2023 ) + 4354 (Sep. 2023 ) + -18026 (Dec. 2023 ) = 円-100,703 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.
Ibiden Co (TSE:4062) 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, Ibiden Co has a Sloan Ratio of 7.60%, indicating the company is in the safe zone and there is no funny business with accruals.
Ibiden Co Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Ibiden Co's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Ibiden Company Limited is a provider of electronic and ceramic products. The company operates through three segments: ceramic, electron and other. The ceramic segment, which contributes the largest portion of revenue, provides environment-related ceramics products, graphite and specialty products, ceramic fibre, and fine ceramics products. Electron, the next- largest segment, offers package substrates in computers, information technology infrastructure, mobile device wiring boards, mobile devices and home appliances. The other segment includes the processing of agriculture, livestock and fisheries, the sale of oil products and synthetic resin production. The company is headquartered in Japan and generates the majority of revenue in Asia.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
TSE:4062 has been successfully added to your 