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.
As of Dec. 2023, Chinese People Holdings Co has a Sloan Ratio of -3.02%, indicating the company is in the safe zone and there is no funny business with accruals.
Chinese People Holdings Co Sloan Ratio % Historical Data
* 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 Chinese People Holdings Co's Sloan Ratio %
For the Utilities - Regulated Gas subindustry, Chinese People Holdings 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.
Chinese People Holdings Co's Sloan Ratio % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Chinese People Holdings Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Chinese People Holdings Co's Sloan Ratio % falls into.
Chinese People Holdings 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.
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Chinese People Holdings Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 73.803 (Jun. 2023 ) + -327.285 (Dec. 2023 ) = HK$-253 Mil.
Chinese People Holdings Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 38.348 (Jun. 2023 ) + 174.851 (Dec. 2023 ) = HK$213 Mil.
Chinese People Holdings Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -30.058 (Jun. 2023 ) + -325.824 (Dec. 2023 ) = HK$-356 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.
Chinese People Holdings Co (HKSE:00681) 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, Chinese People Holdings Co has a Sloan Ratio of -3.02%, indicating the company is in the safe zone and there is no funny business with accruals.
Chinese People Holdings Co Sloan Ratio % Related Terms
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Chinese People Holdings Co (HKSE:00681) Business Description
Chinese People Holdings Co Ltd is an investment holding company. Its segments are Piped gas transmission & distribution, which is into sales of piped gas and construction of gas pipeline networks under gas connection contracts; Cylinder gas supply segment includes sales and distribution of gas using tank containers to end-user households, industrial and commercial customers; Gas distribution segment is into sales of natural gas to industrial and commercial customers; and FMCG & food ingredients supply which is into wholesales and retail of merchandise through supermarkets and convenience stores. Geographically, it derives revenue from China.
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