What is China Zenith Chemical Group 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 China Zenith Chemical Group's Sloan Ratio %
For the Utilities - Regulated Electric subindustry, China Zenith Chemical Group'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.
China Zenith Chemical Group's Sloan Ratio % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, China Zenith Chemical Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where China Zenith Chemical Group's Sloan Ratio % falls into.
China Zenith Chemical Group 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.
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
China Zenith Chemical Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -430.344 (Jun. 2023 ) + -84.614 (Dec. 2023 ) = HK$-514.96 Mil.
China Zenith Chemical Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -18.483 (Jun. 2023 ) + 5.73 (Dec. 2023 ) = HK$-12.75 Mil.
China Zenith Chemical Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -5.151 (Jun. 2023 ) + -1.84 (Dec. 2023 ) = HK$-6.99 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.
China Zenith Chemical Group (HKSE:00362) 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, China Zenith Chemical Group has a Sloan Ratio of -73.14%, indicating there is a warning stage of accrual build up.
China Zenith Chemical Group Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of China Zenith Chemical Group's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
China Zenith Chemical Group (HKSE:00362) Business Description
China Zenith Chemical Group Ltd is an investment holding company which is engaged in the generation and supply of heat and power. The company's operating segments are Heat and power, Chemical products for agriculture, Calcium carbide, and Construction services. It generates maximum revenue from the Calcium carbide segment. The Calcium carbide segment is engaged in manufacture and sale of calcium carbide and lime powder. Geographically, it derives revenue from the People's Republic of China.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
HKSE:00362 has been successfully added to your 