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, Ganfeng Lithium Group Co has a Sloan Ratio of 8.77%, indicating the company is in the safe zone and there is no funny business with accruals.
Ganfeng Lithium Group Co 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 Ganfeng Lithium Group Co's Sloan Ratio %
For the Chemicals subindustry, Ganfeng Lithium Group 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.
Ganfeng Lithium Group Co's Sloan Ratio % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Ganfeng Lithium Group Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Ganfeng Lithium Group Co's Sloan Ratio % falls into.
Ganfeng Lithium Group 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.
Ganfeng Lithium Group Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Ganfeng Lithium Group Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 3453.586 (Jun. 2023 ) + 159.66 (Sep. 2023 ) + -1063.038 (Dec. 2023 ) + -438.902 (Mar. 2024 ) = ¥2,111 Mil.
Ganfeng Lithium Group Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 477.926 (Jun. 2023 ) + 1322.057 (Sep. 2023 ) + 1515.581 (Dec. 2023 ) + 118.856 (Mar. 2024 ) = ¥3,434 Mil.
Ganfeng Lithium Group Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -2197.487 (Jun. 2023 ) + -2423.069 (Sep. 2023 ) + -3004.933 (Dec. 2023 ) + -2079.431 (Mar. 2024 ) = ¥-9,705 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.
Ganfeng Lithium Group Co (SZSE:002460) 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, Ganfeng Lithium Group Co has a Sloan Ratio of 8.77%, indicating the company is in the safe zone and there is no funny business with accruals.
Ganfeng Lithium Group Co Sloan Ratio % Related Terms
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Ganfeng Lithium Group Co (SZSE:002460) Business Description
Founded in 2000, Ganfeng is the world's third largest and China's largest lithium compounds producer and the world's largest lithium metals producer in terms of production capacity. The company offers five major categories of more than 40 lithium compounds and metals products, which is one of the most comprehensive product offerings among the suppliers globally. Starting as a midstream manufacturer of lithium compounds and lithium metals, Ganfeng has successfully expanded into a vertically integrated business model with operations along the critical stages of the industry value chain, including upstream lithium extraction, midstream lithium compounds and metals processing, and downstream lithium battery production and recycling.
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