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.
Far East Horizon's Sloan Ratio for the quarter that ended in Dec. 2023 was 1.41%.
As of Dec. 2023, Far East Horizon has a Sloan Ratio of 1.41%, indicating the company is in the safe zone and there is no funny business with accruals.
Far East Horizon Sloan Ratio % Historical Data
The historical data trend for Far East Horizon'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 Far East Horizon's Sloan Ratio %
For the Credit Services subindustry, Far East Horizon'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.
Far East Horizon's Sloan Ratio % Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Far East Horizon's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Far East Horizon's Sloan Ratio % falls into.
Far East Horizon 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.
Far East Horizon'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.
Far East Horizon's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 3429.723 (Jun. 2023 ) + 3460.943 (Dec. 2023 ) = HK$6,891 Mil.
Far East Horizon's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -9459.16 (Jun. 2023 ) + 13535.142 (Dec. 2023 ) = HK$4,076 Mil.
Far East Horizon's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -194.966 (Jun. 2023 ) + -2427.091 (Dec. 2023 ) = HK$-2,622 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.
Far East Horizon (HKSE:03360) 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, Far East Horizon has a Sloan Ratio of 1.41%, indicating the company is in the safe zone and there is no funny business with accruals.
Far East Horizon Sloan Ratio % Related Terms
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Far East Horizon (HKSE:03360) Business Description
Far East Horizon Ltd is a specialty finance provider. Its services entail integrated finance, investment, trade, advisory and engineering services in healthcare, infrastructure construction, electronic information, packaging, transportation and other sectors. The company operates in two segments. The Financial, lease, and advisory business is the highest revenue-generating segment for the company that deals with the provision of direct finance leasing, sale-leaseback, factoring, entrusted loans, and advisory services. The industrial operation and management business segment deals with the import and export trade and domestic trade of medical equipment, the provision of trade agency services, medical engineering, hospital and healthcare management, and ship brokerage services.
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