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.
Mu Global Holding's Sloan Ratio for the quarter that ended in Jan. 2024 was 0.00%.
Warning Sign:
When sloan ratio (-91.67)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Jan. 2024, Mu Global Holding has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Mu Global Holding Sloan Ratio % Historical Data
The historical data trend for Mu Global Holding'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 Mu Global Holding's Sloan Ratio %
For the Personal Services subindustry, Mu Global Holding'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.
Mu Global Holding's Sloan Ratio % Distribution in the Personal Services Industry
For the Personal Services industry and Consumer Cyclical sector, Mu Global Holding's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Mu Global Holding's Sloan Ratio % falls into.
Mu Global Holding 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.
Mu Global Holding's Sloan Ratio for the fiscal year that ended in Jul. 2023 is calculated as
Mu Global Holding's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was -0.017 (Apr. 2023 ) + -0.001 (Jul. 2023 ) + -0.025 (Oct. 2023 ) + -0.019 (Jan. 2024 ) = $-0.06 Mil.
Mu Global Holding's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was -0.011 (Apr. 2023 ) + -0.024 (Jul. 2023 ) + -0.031 (Oct. 2023 ) + -0.023 (Jan. 2024 ) = $-0.09 Mil.
Mu Global Holding's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was 0.007 (Apr. 2023 ) + 0.014 (Jul. 2023 ) + 0.004 (Oct. 2023 ) + 0 (Jan. 2024 ) = $0.03 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.
Mu Global Holding (OTCPK:MUGH) 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 Jan. 2024, Mu Global Holding has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Mu Global Holding Sloan Ratio % Related Terms
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Mu Global Holding (Mu Global Holding) Business Description
Mu Global Holding Ltd is a beauty and wellness company, providing SPA and wellness service and also Spa related products to the customers. The services provided are designed to improve the overall health system and body function. It operates in the Chinese market with three business models namely Tripartite co-operation and profit-sharing model (deployment of stone spa bed & franchise); Large-scale chain agent model (deployment of stone spa bed); and Direct- service store model. Its products portfolio includes NVB Scent Diffuser and Mini Water Purifier. Its services include Bedrock Bathing/ Hot Stone Bath and Quartz Therapy. The company has geographical segments in Nevada, Seychelles, HongKong and China, where majority of its revenue is eraned from HongKong.
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