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.
Solareast Holdings Co's Sloan Ratio for the quarter that ended in Mar. 2024 was 6.56%.
As of Mar. 2024, Solareast Holdings Co has a Sloan Ratio of 6.56%, indicating the company is in the safe zone and there is no funny business with accruals.
Solareast Holdings Co Sloan Ratio % Historical Data
The historical data trend for Solareast Holdings Co'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 Solareast Holdings Co's Sloan Ratio %
For the Solar subindustry, Solareast Holdings 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.
Solareast Holdings Co's Sloan Ratio % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Solareast Holdings Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Solareast Holdings Co's Sloan Ratio % falls into.
Solareast Holdings 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.
Solareast Holdings Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Solareast Holdings Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 103.392 (Jun. 2023 ) + 77.241 (Sep. 2023 ) + 38.759 (Dec. 2023 ) + -52.384 (Mar. 2024 ) = ¥167 Mil.
Solareast Holdings Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 114.666 (Jun. 2023 ) + 142.526 (Sep. 2023 ) + 344.302 (Dec. 2023 ) + -270.744 (Mar. 2024 ) = ¥331 Mil.
Solareast Holdings Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -345.651 (Jun. 2023 ) + -224.785 (Sep. 2023 ) + 57.999 (Dec. 2023 ) + -109.682 (Mar. 2024 ) = ¥-622 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.
Solareast Holdings Co (SHSE:603366) 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, Solareast Holdings Co has a Sloan Ratio of 6.56%, indicating the company is in the safe zone and there is no funny business with accruals.
Solareast Holdings Co Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Solareast Holdings Co's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Solareast Holdings Co (SHSE:603366) Business Description
Solareast Holdings Co Ltd, formerly Jiangsu Sunrain Solar Energy Co Ltd operates in the solar energy industry. It is specialized in research and application of solar energy. The company's products are exported to more than 100 countries and regions all over the world. It provides solutions for healthy hot water and water purification system. The product range includes heat pipe collector R1, U pipe collector, domestic series heat pump, non-pressure solar water heater, pressurized pre-heated solar water heater and solar charger.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
SHSE:603366 has been successfully added to your 