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.
* 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 China Best Group Holding's Sloan Ratio %
For the Specialty Retail subindustry, China Best Group Holding'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.
China Best Group Holding's Sloan Ratio % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, China Best Group Holding's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where China Best Group Holding's Sloan Ratio % falls into.
China Best Group Holding 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.
China Best Group Holding's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
China Best Group Holding's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was -296.49 (Mar. 2023 ) + -40.845 (Sep. 2023 ) = HK$-337.3 Mil.
China Best Group Holding's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was 22.216 (Mar. 2023 ) + 2.066 (Sep. 2023 ) = HK$24.3 Mil.
China Best Group Holding's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was 76.214 (Mar. 2023 ) + -16.923 (Sep. 2023 ) = HK$59.3 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.
China Best Group Holding (HKSE:00370) 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 Sep. 2023, China Best Group Holding has a Sloan Ratio of -22.67%, indicating there is a warning stage of accrual build up.
China Best Group Holding Sloan Ratio % Related Terms
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China Best Group Holding (HKSE:00370) Business Description
China Best Group Holding Ltd is a China-based company having various business segments. Trading of goods including radio systems and electronic appliances which is the key revenue driver; Finance leasing of plant and machinery; Money lending; Securities and futures brokerage segment engages in securities and futures dealing services in Hong Kong; International air and sea freight forwarding and logistic services to customers in Singapore and the USA; Securities trading of equity securities and dividend income from held for trading investments; Property investment for rental income and capital appreciation in PRC; Building architecture and interior design services; Property brokerage and agency service,Geothermal energy, Customised technical support segment and Centralised heating segment.
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