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, Sun Hung Kai Properties has a Sloan Ratio of 2.76%, indicating the company is in the safe zone and there is no funny business with accruals.
Sun Hung Kai Properties 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 Sun Hung Kai Properties's Sloan Ratio %
For the Real Estate - Development subindustry, Sun Hung Kai Properties'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.
Sun Hung Kai Properties's Sloan Ratio % Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, Sun Hung Kai Properties's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sun Hung Kai Properties's Sloan Ratio % falls into.
Sun Hung Kai Properties 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.
Sun Hung Kai Properties's Sloan Ratio for the fiscal year that ended in Jun. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Sun Hung Kai Properties's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 15497 (Jun. 2023 ) + 9145 (Dec. 2023 ) = HK$24,642 Mil.
Sun Hung Kai Properties's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 18281 (Jun. 2023 ) + -972 (Dec. 2023 ) = HK$17,309 Mil.
Sun Hung Kai Properties's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -10025 (Jun. 2023 ) + -5199 (Dec. 2023 ) = HK$-15,224 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.
Sun Hung Kai Properties (HKSE:00016) 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, Sun Hung Kai Properties has a Sloan Ratio of 2.76%, indicating the company is in the safe zone and there is no funny business with accruals.
Sun Hung Kai Properties Sloan Ratio % Related Terms
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Sun Hung Kai Properties (HKSE:00016) Business Description
Sun Hung Kai Properties is a diversified real estate developer in Hong Kong with a core focus on the residential, retail and office real estate segment. Most of its business is based in Hong Kong where it is a leading private housing developer and holds a portfolio of high-quality retail and office assets for rental income. The company also invests in other listed entities, including telecommunication company, SmarTone and data center provider, SUNeVision. The Kwok family is the controlling shareholder, with a stake of more than 40%.
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