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.
QDM International's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.00%.
As of Dec. 2023, QDM International has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
QDM International Sloan Ratio % Historical Data
The historical data trend for QDM International'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 QDM International's Sloan Ratio %
For the Insurance Brokers subindustry, QDM International'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.
QDM International's Sloan Ratio % Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, QDM International's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where QDM International's Sloan Ratio % falls into.
QDM International 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.
QDM International's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
QDM International's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 0.283 (Mar. 2023 ) + 0.943 (Jun. 2023 ) + 0.269 (Sep. 2023 ) + 0.192 (Dec. 2023 ) = $1.69 Mil.
QDM International's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 0.239 (Mar. 2023 ) + 1.892 (Jun. 2023 ) + 0.827 (Sep. 2023 ) + 0.719 (Dec. 2023 ) = $3.68 Mil.
QDM International's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 0 (Mar. 2023 ) + -0.093 (Jun. 2023 ) + 0 (Sep. 2023 ) + -0.008 (Dec. 2023 ) = $-0.10 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.
QDM International (OTCPK:QDMI) 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, QDM International has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
QDM International Sloan Ratio % Related Terms
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QDM International (QDM International) Business Description
QDM International Inc is an insurance brokerage company operating in Hong Kong. The company sells a wide range of insurance products, consisting of two main categories: life and medical insurance, such as individual life insurance; and general insurance, such as automobile insurance, commercial property insurance, liability insurance, and homeowner insurance. In addition, as a Mandatory Provident Fund Intermediary, it also provides customers with assistance on account opening and related services under the MPF and the Occupational Retirement Schemes Ordinance schemes, both of which are mandatory retirement protection schemes set up for employees who are Hong Kong residents.
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