What is CSSC (Hong Kong) Shipping 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.
* 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 CSSC (Hong Kong) Shipping Co's Sloan Ratio %
For the Rental & Leasing Services subindustry, CSSC (Hong Kong) Shipping 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.
CSSC (Hong Kong) Shipping Co's Sloan Ratio % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, CSSC (Hong Kong) Shipping Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where CSSC (Hong Kong) Shipping Co's Sloan Ratio % falls into.
CSSC (Hong Kong) Shipping 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.
CSSC (Hong Kong) Shipping Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 1085.74 (Jun. 2023 ) + 815.866 (Dec. 2023 ) = HK$1,902 Mil.
CSSC (Hong Kong) Shipping Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 1715.236 (Jun. 2023 ) + -2167.406 (Dec. 2023 ) = HK$-452 Mil.
CSSC (Hong Kong) Shipping Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -1226.198 (Jun. 2023 ) + -1306.893 (Dec. 2023 ) = HK$-2,533 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.
CSSC (Hong Kong) Shipping Co (HKSE:03877) 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, CSSC (Hong Kong) Shipping Co has a Sloan Ratio of 10.83%, indicating there is a warning stage of accrual build up.
CSSC (Hong Kong) Shipping Co Sloan Ratio % Related Terms
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CSSC (Hong Kong) Shipping Co (HKSE:03877) Business Description
CSSC (Hong Kong) Shipping Co Ltd is a shipyard-affiliated leasing company in Greater China. As a player in the ship leasing industry, it offers customized ship leasing solutions that suit customers' different needs. The core business of the group is the provision of leasing services, which include finance leases and operating leases. It operates through the below segments: Leasing services, Shipbroking services, and Loan borrowings. The Leasing services segment that derives the majority of revenue provides Leasing services.
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