GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » XCMG Construction Machinery Co Ltd (SZSE:000425) » Definitions » Sloan Ratio %

XCMG Construction Machinery Co (SZSE:000425) Sloan Ratio % : -0.36% (As of Mar. 2024)


View and export this data going back to 1996. Start your Free Trial

What is XCMG Construction Machinery 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.

XCMG Construction Machinery Co's Sloan Ratio for the quarter that ended in Mar. 2024 was -0.36%.

As of Mar. 2024, XCMG Construction Machinery Co has a Sloan Ratio of -0.36%, indicating the company is in the safe zone and there is no funny business with accruals.


XCMG Construction Machinery Co Sloan Ratio % Historical Data

The historical data trend for XCMG Construction Machinery 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.

* Premium members only.

XCMG Construction Machinery Co Sloan Ratio % Chart

XCMG Construction Machinery Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.71 2.13 -2.51 4.79 0.21

XCMG Construction Machinery Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.05 5.56 1.28 0.21 -0.36

Competitive Comparison of XCMG Construction Machinery Co's Sloan Ratio %

For the Farm & Heavy Construction Machinery subindustry, XCMG Construction Machinery 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.


XCMG Construction Machinery Co's Sloan Ratio % Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, XCMG Construction Machinery Co's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where XCMG Construction Machinery Co's Sloan Ratio % falls into.



XCMG Construction Machinery 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.

XCMG Construction Machinery Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2023 )-Cash Flow from Operations (A: Dec. 2023 )
-Cash Flow from Investing (A: Dec. 2023 ))/Total Assets (A: Dec. 2023 )
=(5326.47-3570.913
-1411.389)/161994.608
=0.21%

XCMG Construction Machinery Co's Sloan Ratio for the quarter that ended in Mar. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Mar. 2024 )
=(5403.591-2997.169
-3002.01)/164535.529
=-0.36%

XCMG Construction Machinery Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 2066.099 (Jun. 2023 ) + 1249.871 (Sep. 2023 ) + 487.149 (Dec. 2023 ) + 1600.472 (Mar. 2024 ) = ¥5,404 Mil.
XCMG Construction Machinery Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 732.389 (Jun. 2023 ) + 104.765 (Sep. 2023 ) + 1928.763 (Dec. 2023 ) + 231.252 (Mar. 2024 ) = ¥2,997 Mil.
XCMG Construction Machinery Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 2223.453 (Jun. 2023 ) + 3322.452 (Sep. 2023 ) + -1696.146 (Dec. 2023 ) + -847.749 (Mar. 2024 ) = ¥3,002 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.


XCMG Construction Machinery Co  (SZSE:000425) 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.

According to How to Beat the Market with the Sloan Ratio:

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, XCMG Construction Machinery Co has a Sloan Ratio of -0.36%, indicating the company is in the safe zone and there is no funny business with accruals.


XCMG Construction Machinery Co Sloan Ratio % Related Terms

Thank you for viewing the detailed overview of XCMG Construction Machinery Co's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.


XCMG Construction Machinery Co (SZSE:000425) Business Description

Traded in Other Exchanges
N/A
Address
No. 26 Mountain Road, Economic and Technological Development Zone, Jinshanqiao, Jiangsu, Xuzhou, CHN, 221004
XCMG Construction Machinery Co Ltd is engaged in tech development, manufacturing and distribution of mainframes and hydraulic pressure parts in China. Its products include hoisting machinery, shovel machinery, compaction machinery, concrete machinery, road machinery, pile construction machinery, firefighting machinery, and construction machinery spare parts. The company distributes its products within domestic market and to overseas markets.
Executives
Zhang Shou Hang Supervisors
Yang Yong Executives
Zhou Li Cheng Director
Zhang Yu Chun Director

XCMG Construction Machinery Co (SZSE:000425) Headlines

No Headlines