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, Ten Pao Group Holdings has a Sloan Ratio of 3.22%, indicating the company is in the safe zone and there is no funny business with accruals.
Ten Pao Group Holdings 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 Ten Pao Group Holdings's Sloan Ratio %
For the Electrical Equipment & Parts subindustry, Ten Pao Group 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.
Ten Pao Group Holdings's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Ten Pao Group Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Ten Pao Group Holdings's Sloan Ratio % falls into.
Ten Pao Group 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.
Ten Pao Group 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.
Ten Pao Group Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 136.712 (Jun. 2023 ) + 192.144 (Dec. 2023 ) = HK$329 Mil.
Ten Pao Group Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 21.654 (Jun. 2023 ) + 463.048 (Dec. 2023 ) = HK$485 Mil.
Ten Pao Group Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -111.567 (Jun. 2023 ) + -183.406 (Dec. 2023 ) = HK$-295 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.
Ten Pao Group Holdings (HKSE:01979) 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, Ten Pao Group Holdings has a Sloan Ratio of 3.22%, indicating the company is in the safe zone and there is no funny business with accruals.
Ten Pao Group Holdings Sloan Ratio % Related Terms
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Ten Pao Group Holdings (HKSE:01979) Business Description
Ten Pao Group Holdings Ltd is an investment holding company. It is engaged in the sales and manufacturing of switching power supply units for consumer products and smart chargers and controllers for industrial use. The operating segments of the company are telecommunication, media and entertainment, electrical home appliances, lighting, smart chargers and controllers, and others. Some of its products are USB chargers, wireless chargers, adapters, open frame power supply, led drivers, smart charger and controllers, and power saver. Geographically, the group has a business presence in the PRC, Europe, Asia, the U.S., Africa and Other regions, of which prime revenue is derived from the PRC.
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