What is Shenzhen Zhongheng Huafa Co Sloan Ratio %?
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.
* 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 Shenzhen Zhongheng Huafa Co's Sloan Ratio %
For the Electronic Components subindustry, Shenzhen Zhongheng Huafa 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.
Shenzhen Zhongheng Huafa Co's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Shenzhen Zhongheng Huafa Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Shenzhen Zhongheng Huafa Co's Sloan Ratio % falls into.
Shenzhen Zhongheng Huafa 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.
Shenzhen Zhongheng Huafa Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 1.445 (Jun. 2023 ) + 4.567 (Sep. 2023 ) + 0.898 (Dec. 2023 ) + 5.385 (Mar. 2024 ) = ¥12.3 Mil.
Shenzhen Zhongheng Huafa Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 21.587 (Jun. 2023 ) + -65.931 (Sep. 2023 ) + 125.792 (Dec. 2023 ) + 1.533 (Mar. 2024 ) = ¥83.0 Mil.
Shenzhen Zhongheng Huafa Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 1.314 (Jun. 2023 ) + -0.193 (Sep. 2023 ) + 0.802 (Dec. 2023 ) + -0.907 (Mar. 2024 ) = ¥1.0 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.
Shenzhen Zhongheng Huafa Co (SZSE:000020) 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 Mar. 2024, Shenzhen Zhongheng Huafa Co has a Sloan Ratio of -12.10%, indicating there is a warning stage of accrual build up.
Shenzhen Zhongheng Huafa Co Sloan Ratio % Related Terms
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Shenzhen Zhongheng Huafa Co (SZSE:000020) Business Description
Shenzhen Zhongheng Huafa Co Ltd operates in two business industrial and property management. The industrial business mainly includes injection molding, polylon (light-weight packaging materials), and complete machine production and sales of liquid crystal display, and property management business is mainly the lease of its own property. The company engages in producing and sales of vary color TV set, liquid crystal display, LCD, radio-recorder, sound equipment, electronic watch, electronic game and computers, the printed wiring board, precision injection parts, light packaging material and hardware (including tool and mould) for various electronic products and supporting parts, plating and surface treatment and tin wire, development and operation of real estate and property management.
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