What is Ningbo Bohui Chemical Technology 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.
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Ningbo Bohui Chemical Technology Co Sloan Ratio % Chart
Competitive Comparison of Ningbo Bohui Chemical Technology Co's Sloan Ratio %
For the Oil & Gas Refining & Marketing subindustry, Ningbo Bohui Chemical Technology 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.
Ningbo Bohui Chemical Technology Co's Sloan Ratio % Distribution in the Oil & Gas Industry
* The bar in red indicates where Ningbo Bohui Chemical Technology Co's Sloan Ratio % falls into.
Ningbo Bohui Chemical Technology 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.
Ningbo Bohui Chemical Technology Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 56.367 (Jun. 2023 ) + 22.302 (Sep. 2023 ) + -335.493 (Dec. 2023 ) + -99.427 (Mar. 2024 ) = ¥-356 Mil.
Ningbo Bohui Chemical Technology Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -109.805 (Jun. 2023 ) + 97.505 (Sep. 2023 ) + 439.549 (Dec. 2023 ) + -390.875 (Mar. 2024 ) = ¥36 Mil.
Ningbo Bohui Chemical Technology Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -124.257 (Jun. 2023 ) + -56.738 (Sep. 2023 ) + 176.054 (Dec. 2023 ) + -103.059 (Mar. 2024 ) = ¥-108 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.
Ningbo Bohui Chemical Technology Co (SZSE:300839) 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, Ningbo Bohui Chemical Technology Co has a Sloan Ratio of -10.85%, indicating earnings are more likely to be made up of accruals.
Ningbo Bohui Chemical Technology Co Sloan Ratio % Related Terms
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Ningbo Bohui Chemical Technology Co (SZSE:300839) Business Description
Ningbo Bohui Chemical Technology Co Ltd is engaged in research, development, production and sales of heavy aromatic hydrocarbon series products and light fuel oil. The company uses extraction technology and uses fuel oil as a raw material for deep processing, extending the industrial chain, increasing the added value of fuel oil, and turning it into waste. It produces and sells aromatic hydrocarbon series products such as rubber additives, plastic additives, asphalt additives, lubricant additives, and light fuel oil. Its application scope of products mainly covers the fields of rubber processing, asphalt processing and lubricating oil processing.
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