What is SINOPEC Engineering (Group) 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.
As of Dec. 2023, SINOPEC Engineering (Group) Co has a Sloan Ratio of 3.07%, indicating the company is in the safe zone and there is no funny business with accruals.
SINOPEC Engineering (Group) 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.
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SINOPEC Engineering (Group) Co Sloan Ratio % Chart
Competitive Comparison of SINOPEC Engineering (Group) Co's Sloan Ratio %
For the Engineering & Construction subindustry, SINOPEC Engineering (Group) 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.
SINOPEC Engineering (Group) Co's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, SINOPEC Engineering (Group) Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where SINOPEC Engineering (Group) Co's Sloan Ratio % falls into.
SINOPEC Engineering (Group) 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.
SINOPEC Engineering (Group) Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 1440.586 (Jun. 2023 ) + 1113.877 (Dec. 2023 ) = HK$2,554 Mil.
SINOPEC Engineering (Group) Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -1135.899 (Jun. 2023 ) + 3888.672 (Dec. 2023 ) = HK$2,753 Mil.
SINOPEC Engineering (Group) Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -553.896 (Jun. 2023 ) + -2359.784 (Dec. 2023 ) = HK$-2,914 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.
SINOPEC Engineering (Group) Co (HKSE:02386) 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, SINOPEC Engineering (Group) Co has a Sloan Ratio of 3.07%, indicating the company is in the safe zone and there is no funny business with accruals.
SINOPEC Engineering (Group) Co Sloan Ratio % Related Terms
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SINOPEC Engineering (Group) Co (HKSE:02386) Business Description
SINOPEC Engineering (Group) Co Ltd is a wholly owned subsidiary of the Sinopec Group, a Chinese company. The group provides integrated engineering services and technical patents for domestic and international refining and chemical engineering businesses. The group mainly contains four segments: engineering, consulting and licensing; engineering, procurement and construction (EPC) contracting; construction; and equipment manufacturing. The company generates most of its revenue from the EPC contracting segment. Geographically, the business presence of the group is primarily seen in China, Malaysia, Kuwait, and Saudi Arabia.
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