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Weichai Heavy Machinery Co (SZSE:000880) Sloan Ratio % : -4.05% (As of Mar. 2024)


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What is Weichai Heavy 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.

Weichai Heavy Machinery Co's Sloan Ratio for the quarter that ended in Mar. 2024 was -4.05%.

As of Mar. 2024, Weichai Heavy Machinery Co has a Sloan Ratio of -4.05%, indicating the company is in the safe zone and there is no funny business with accruals.


Weichai Heavy Machinery Co Sloan Ratio % Historical Data

The historical data trend for Weichai Heavy 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.

Weichai Heavy Machinery Co Sloan Ratio % Chart

Weichai Heavy 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 -0.77 -2.22 -1.73 -3.23 -5.30

Weichai Heavy 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 -7.10 -6.13 -8.04 -5.30 -4.05

Competitive Comparison of Weichai Heavy Machinery Co's Sloan Ratio %

For the Specialty Industrial Machinery subindustry, Weichai Heavy 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.


Weichai Heavy Machinery Co's Sloan Ratio % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Weichai Heavy Machinery Co's Sloan Ratio % distribution charts can be found below:

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



Weichai Heavy 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.

Weichai Heavy 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 )
=(166.479-461.174
--6.625)/5432.648
=-5.30%

Weichai Heavy 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 )
=(169.053-398.747
--7.87)/5472.279
=-4.05%

Weichai Heavy Machinery Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 65.627 (Jun. 2023 ) + 47.775 (Sep. 2023 ) + 31.771 (Dec. 2023 ) + 23.88 (Mar. 2024 ) = ¥169 Mil.
Weichai Heavy Machinery Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 151.03 (Jun. 2023 ) + 65.873 (Sep. 2023 ) + 118.77 (Dec. 2023 ) + 63.074 (Mar. 2024 ) = ¥399 Mil.
Weichai Heavy Machinery Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 0.825 (Jun. 2023 ) + -0.161 (Sep. 2023 ) + -7.193 (Dec. 2023 ) + -1.341 (Mar. 2024 ) = ¥-8 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.


Weichai Heavy Machinery Co  (SZSE:000880) 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, Weichai Heavy Machinery Co has a Sloan Ratio of -4.05%, indicating the company is in the safe zone and there is no funny business with accruals.


Weichai Heavy Machinery Co Sloan Ratio % Related Terms

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Weichai Heavy Machinery Co (SZSE:000880) Business Description

Traded in Other Exchanges
N/A
Address
No. 26 Minsheng East Street, Shandong Province, Weifang, CHN, 261001
Weichai Heavy Machinery Co Ltd is a China-based company engaged in developing, manufacturing and selling marine power and power generating units. Its product portfolio includes medium-speed diesel engines, power generating sets, powertrain system for marine power, generating device market, diesel engine parts and marine gearbox parts. The company provides core power and complete solutions to the global shipping and energy electricity market.

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