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.
Tah hsin Industrial's Sloan Ratio for the quarter that ended in Mar. 2024 was -5.52%.
As of Mar. 2024, Tah hsin Industrial has a Sloan Ratio of -5.52%, indicating the company is in the safe zone and there is no funny business with accruals.
Tah hsin Industrial Sloan Ratio % Historical Data
The historical data trend for Tah hsin Industrial'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 Tah hsin Industrial's Sloan Ratio %
For the Apparel Manufacturing subindustry, Tah hsin Industrial'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.
Tah hsin Industrial's Sloan Ratio % Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Tah hsin Industrial's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Tah hsin Industrial's Sloan Ratio % falls into.
Tah hsin Industrial 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.
Tah hsin Industrial's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Tah hsin Industrial's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 234.568 (Jun. 2023 ) + 130.703 (Sep. 2023 ) + -47.624 (Dec. 2023 ) + 40.045 (Mar. 2024 ) = NT$358 Mil.
Tah hsin Industrial's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 39.163 (Jun. 2023 ) + 370.868 (Sep. 2023 ) + -39.071 (Dec. 2023 ) + 87.809 (Mar. 2024 ) = NT$459 Mil.
Tah hsin Industrial's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 762.443 (Jun. 2023 ) + -337.165 (Sep. 2023 ) + 7.948 (Dec. 2023 ) + 85.126 (Mar. 2024 ) = NT$518 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.
Tah hsin Industrial (TPE:1315) 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, Tah hsin Industrial has a Sloan Ratio of -5.52%, indicating the company is in the safe zone and there is no funny business with accruals.
Tah hsin Industrial Sloan Ratio % Related Terms
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Tah hsin Industrial (TPE:1315) Business Description
Tah hsin Industrial Corp is engaged in the manufacturing and trading of a variety of plastic raincoats, nylon raincoats, overalls, wardrobes, nylon jackets, PP corrugated boards, TC ready-to-wear garments, leather goods, handbags, file folders, plastic film, carrier bags, laminating machines, and others. Its operating segment includes Tahsin in Taiwan, Tahsin Shoji Co., Ltd, United States T.H. USA; Fujian Putian DAFU Plastic Industry Co., Ltd; Tah Viet Co., Ltd; Myanmar Tahsin; Tah Fa Investment Co., Ltd, and others. The company generates maximum revenue from the Tahsin Taiwan segment.
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