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.
Fullshare Holdings's Sloan Ratio for the quarter that ended in Dec. 2023 was -2.27%.
As of Dec. 2023, Fullshare Holdings has a Sloan Ratio of -2.27%, indicating the company is in the safe zone and there is no funny business with accruals.
Fullshare Holdings Sloan Ratio % Historical Data
The historical data trend for Fullshare Holdings'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.
Competitive Comparison of Fullshare Holdings's Sloan Ratio %
For the Specialty Industrial Machinery subindustry, Fullshare Holdings'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.
Fullshare Holdings's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Fullshare Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Fullshare Holdings's Sloan Ratio % falls into.
Fullshare Holdings 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.
Fullshare Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Fullshare Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -188.725 (Jun. 2023 ) + -850.953 (Dec. 2023 ) = HK$-1,040 Mil.
Fullshare Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -131.659 (Jun. 2023 ) + 992.231 (Dec. 2023 ) = HK$861 Mil.
Fullshare Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -1266.796 (Jun. 2023 ) + 721.523 (Dec. 2023 ) = HK$-545 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.
Fullshare Holdings (HKSE:00607) 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, Fullshare Holdings has a Sloan Ratio of -2.27%, indicating the company is in the safe zone and there is no funny business with accruals.
Fullshare Holdings Sloan Ratio % Related Terms
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Fullshare Holdings (HKSE:00607) Business Description
Fullshare Holdings Ltd is an investment holding company. The company operates through the following segments: properties; tourism; healthcare, education, and others; Investment and financial services; and New energy. The company derives the majority of its revenue from the new energy segment that involves the research, development, manufacture, and distribution of mechanical transmission equipment used in wind power and a wide range of industrial applications. Its geographical segments are China, the United States, Europe, Australia, and other countries. China accounts for the majority of the company's annual revenue.
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