What is Hanhua Financial Holding 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, Hanhua Financial Holding Co has a Sloan Ratio of -4.29%, indicating the company is in the safe zone and there is no funny business with accruals.
Hanhua Financial Holding 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 Hanhua Financial Holding Co's Sloan Ratio %
For the Credit Services subindustry, Hanhua Financial Holding 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.
Hanhua Financial Holding Co's Sloan Ratio % Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Hanhua Financial Holding Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Hanhua Financial Holding Co's Sloan Ratio % falls into.
Hanhua Financial Holding 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.
Hanhua Financial Holding Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 12.199 (Jun. 2023 ) + 22.651 (Dec. 2023 ) = HK$34.9 Mil.
Hanhua Financial Holding Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 509.849 (Jun. 2023 ) + 12.093 (Dec. 2023 ) = HK$521.9 Mil.
Hanhua Financial Holding Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -53.082 (Jun. 2023 ) + 184.003 (Dec. 2023 ) = HK$130.9 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.
Hanhua Financial Holding Co (HKSE:03903) 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, Hanhua Financial Holding Co has a Sloan Ratio of -4.29%, indicating the company is in the safe zone and there is no funny business with accruals.
Hanhua Financial Holding Co Sloan Ratio % Related Terms
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Hanhua Financial Holding Co (HKSE:03903) Business Description
Hanhua Financial Holding Co Ltd is engaged in the investment business, investment management, and investment advisory. The company offers financial services to serve the financing and business needs of SMEs and microenterprises under several business lines such as credit guarantee, small loans, internet finance, financial factoring, capital management, and financing leases in China. Its segment includes partnership finance business; SME lending; capital investment and management; and others. It derives revenue by provision of integrated financial services and solutions such as credit guarantee business and capital business (capital business includes accounts receivables for factoring business, bill discount business, and entrusted loans), financial assets management, and other services.
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