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Li Ning Co (FRA:LNLB) Sloan Ratio % : -0.79% (As of Jun. 2024)


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What is Li Ning Co Sloan Ratio %?

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.

Li Ning Co's Sloan Ratio for the quarter that ended in Jun. 2024 was -0.79%.

As of Jun. 2024, Li Ning Co has a Sloan Ratio of -0.79%, indicating the company is in the safe zone and there is no funny business with accruals.


Li Ning Co Sloan Ratio % Historical Data

The historical data trend for Li Ning 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.

* Premium members only.

Li Ning Co Sloan Ratio % Chart

Li Ning Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -11.40 -0.50 13.29 28.63 2.77

Li Ning Co Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.22 29.26 18.91 2.79 -0.79

Competitive Comparison of Li Ning Co's Sloan Ratio %

For the Leisure subindustry, Li Ning 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.


Li Ning Co's Sloan Ratio % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Li Ning Co's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Li Ning Co's Sloan Ratio % falls into.



Li Ning 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.

Li Ning Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2023 )-Cash Flow from Operations (A: Dec. 2023 )
-Cash Flow from Investing (A: Dec. 2023 ))/Total Assets (A: Dec. 2023 )
=(409.288-602.061
--314.533)/4393.232
=2.77%

Li Ning Co's Sloan Ratio for the quarter that ended in Jun. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Jun. 2024 )
=(386.83-702.228
--279.234)/4550.579
=-0.79%

For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data. Li Ning Co's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was 136.863 (Dec. 2023 ) + 249.967 (Jun. 2024 ) = €387 Mil.
Li Ning Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was 352.599 (Dec. 2023 ) + 349.629 (Jun. 2024 ) = €702 Mil.
Li Ning Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was -140.399 (Dec. 2023 ) + -138.835 (Jun. 2024 ) = €-279 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.


Li Ning Co  (FRA:LNLB) 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.

According to How to Beat the Market with the Sloan Ratio:

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 Jun. 2024, Li Ning Co has a Sloan Ratio of -0.79%, indicating the company is in the safe zone and there is no funny business with accruals.


Li Ning Co Sloan Ratio % Related Terms

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Li Ning Co Business Description

Traded in Other Exchanges
Address
No. 8 Xing Guang 5th Street, Opto-Mechatronics Industrial Park, Zhongguancun Science and Technology Area, Tongzhou District, Beijing, CHN, 101111
Established in 1989, Li Ning is one of the largest sportswear companies in China. Headquartered in Beijing, Li Ning mainly sells professional and leisure footwear and apparel under the Li Ning brand. Despite having a single-brand strategy, Li Ning launched multiple sub-brands (such as China Li Ning and Li Ning 1990) to appeal to different demographics. As of the end of 2021, the company had 7,137 stores in China, of which 1,232 were directly operated, and 5,905 were franchised.

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