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, Metallurgical of China has a Sloan Ratio of 2.46%, indicating the company is in the safe zone and there is no funny business with accruals.
Metallurgical 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 Metallurgical of China's Sloan Ratio %
For the Engineering & Construction subindustry, Metallurgical 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.
Metallurgical of China's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Metallurgical of China's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Metallurgical of China's Sloan Ratio % falls into.
Metallurgical 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.
Metallurgical of China's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Metallurgical of China's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 3845.676 (Jun. 2023 ) + 966.297 (Sep. 2023 ) + 486.572 (Dec. 2023 ) + 2678.657 (Mar. 2024 ) = ¥7,977 Mil.
Metallurgical of China's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 7041.261 (Jun. 2023 ) + -7960.545 (Sep. 2023 ) + 28368.765 (Dec. 2023 ) + -30747.367 (Mar. 2024 ) = ¥-3,298 Mil.
Metallurgical of China's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -1172.585 (Jun. 2023 ) + -849.289 (Sep. 2023 ) + -3357.499 (Dec. 2023 ) + -675.735 (Mar. 2024 ) = ¥-6,055 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.
Metallurgical of China (SHSE:601618) 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, Metallurgical of China has a Sloan Ratio of 2.46%, indicating the company is in the safe zone and there is no funny business with accruals.
Metallurgical of China Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Metallurgical of China's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Metallurgical of China (SHSE:601618) Business Description
Metallurgical Corp of China Ltd is a metallurgical engineering and construction group operating primarily in China. The segments through which business is conducted are Engineering contracting business, the Property development business, Equipment Manufacturing business, the Resource development business, and Other businesses. It generates most revenues from the Engineering contracting business segment. Geographically, it derives most of its revenue from China.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
SHSE:601618 has been successfully added to your 