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 Mar. 2024, Agricultural Bank of China has a Sloan Ratio of 2.04%, indicating the company is in the safe zone and there is no funny business with accruals.
Agricultural Bank of China 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 Agricultural Bank of China's Sloan Ratio %
For the Banks - Diversified subindustry, Agricultural Bank of China'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.
Agricultural Bank of China's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Agricultural Bank of China's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Agricultural Bank of China's Sloan Ratio % falls into.
Agricultural Bank of China 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.
Agricultural Bank of China's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 61680 (Jun. 2023 ) + 74122 (Sep. 2023 ) + 62000 (Dec. 2023 ) + 70386 (Mar. 2024 ) = ¥268,188 Mil.
Agricultural Bank of China's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 447642 (Jun. 2023 ) + 24797 (Sep. 2023 ) + 446986 (Dec. 2023 ) + 783563 (Mar. 2024 ) = ¥1,702,988 Mil.
Agricultural Bank of China's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -165213 (Jun. 2023 ) + -369696 (Sep. 2023 ) + -573418 (Dec. 2023 ) + -1187549 (Mar. 2024 ) = ¥-2,295,876 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.
Agricultural Bank of China (SHSE:601288) 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 Mar. 2024, Agricultural Bank of China has a Sloan Ratio of 2.04%, indicating the company is in the safe zone and there is no funny business with accruals.
Agricultural Bank of China Sloan Ratio % Related Terms
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Agricultural Bank of China (SHSE:601288) Business Description
As one of the big four banks, ABC is headquartered in Beijing. The bank evolved from a state-owned specialized bank to a state-controlled commercial bank. It listed on the Hong Kong and Shanghai Stock Exchanges in 2010. ABC operates more than 20,000-branch network in China, providing corporate and retail banking products and services, and carries out treasury operations for its own accounts or for its customers. Shareholders Central Huijin, China's state-owned investment company, and the Ministry of Finance own 37.15% and 32.47%, respectively. Corporate banking, retail banking, and wholesale banking accounted for 41%, 53%, and 6% of total revenue in the first half of 2023, respectively. Rural banking and urban banking contributed 49% and 51% of total revenue during the same period.
Agricultural Bank of China (SHSE:601288) Headlines
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