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.
Hotai Motor Co's Sloan Ratio for the quarter that ended in Mar. 2024 was 10.47%.
As of Mar. 2024, Hotai Motor Co has a Sloan Ratio of 10.47%, indicating there is a warning stage of accrual build up.
Hotai Motor Co Sloan Ratio % Historical Data
The historical data trend for Hotai Motor 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 Hotai Motor Co's Sloan Ratio %
For the Auto & Truck Dealerships subindustry, Hotai Motor 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.
Hotai Motor Co's Sloan Ratio % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Hotai Motor Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Hotai Motor Co's Sloan Ratio % falls into.
Hotai Motor 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.
Hotai Motor Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Hotai Motor Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 7046.974 (Jun. 2023 ) + 6345.6 (Sep. 2023 ) + 4401.696 (Dec. 2023 ) + 5885.107 (Mar. 2024 ) = NT$23,679 Mil.
Hotai Motor Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -6326.162 (Jun. 2023 ) + -2596.775 (Sep. 2023 ) + 871.019 (Dec. 2023 ) + 7553.139 (Mar. 2024 ) = NT$-499 Mil.
Hotai Motor Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -6528.807 (Jun. 2023 ) + -6552.049 (Sep. 2023 ) + -6724.644 (Dec. 2023 ) + -7974.181 (Mar. 2024 ) = NT$-27,780 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.
Hotai Motor Co (TPE:2207) 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, Hotai Motor Co has a Sloan Ratio of 10.47%, indicating there is a warning stage of accrual build up.
Hotai Motor Co Sloan Ratio % Related Terms
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Hotai Motor Co Ltd is an automobile distribution company domiciled in Taiwan. The company distributes new and used passenger vehicles under the Toyota and Lexus brands; commercial vehicles, including trucks, under the Toyota and HINO brands; and Toyota industrial equipment. It earns more than half its sales from HINO- and Toyota-branded products. In addition to vehicle sales, Hotai Motor provides leasing and financing services, insurance, vehicle accessories, and vehicle servicing. Its segments include the Distributor of Toyota and Hino products segments, Installment trading, Leasing, Property insurance, overseas sales agent and other segments. It has operations across both Taiwan and mainland China, with the vast majority of revenue derived domestically.
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