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, Henan Jinma Energy Company has a Sloan Ratio of 6.79%, indicating the company is in the safe zone and there is no funny business with accruals.
Henan Jinma Energy Company 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 Henan Jinma Energy Company's Sloan Ratio %
For the Coking Coal subindustry, Henan Jinma Energy Company'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.
Henan Jinma Energy Company's Sloan Ratio % Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Henan Jinma Energy Company's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Henan Jinma Energy Company's Sloan Ratio % falls into.
Henan Jinma Energy Company 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.
Henan Jinma Energy Company's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 47.216 (Jun. 2023 ) + -22.799 (Dec. 2023 ) = HK$24 Mil.
Henan Jinma Energy Company's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -6.515 (Jun. 2023 ) + 83.066 (Dec. 2023 ) = HK$77 Mil.
Henan Jinma Energy Company's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -591.147 (Jun. 2023 ) + -391.853 (Dec. 2023 ) = HK$-983 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.
Henan Jinma Energy Company (HKSE:06885) 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, Henan Jinma Energy Company has a Sloan Ratio of 6.79%, indicating the company is in the safe zone and there is no funny business with accruals.
Henan Jinma Energy Company Sloan Ratio % Related Terms
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Henan Jinma Energy Company (HKSE:06885) Business Description
Henan Jinma Energy Company Ltd operates as a coke producer and processor of coking by-products in the coking chemical industry in Henan province. It operates through the following business segments: Coke Segment is mainly engaged in the manufacture of Coke. The Refined Chemicals Segment is mainly engaged in the manufacture of benzene-based chemicals and coal-tar-based chemicals. Energy Products Segment is mainly engaged in the manufacture of coal gas. The Trading Segment is mainly engaged in the trading of coal and coal mining equipment. It generates maximum revenue from the Coke segment. Geographically, it derives revenue from the PRC.
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