What is Aeon Credit Service (Asia) 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.
* 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 Aeon Credit Service (Asia) Co's Sloan Ratio %
For the Credit Services subindustry, Aeon Credit Service (Asia) 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.
Aeon Credit Service (Asia) Co's Sloan Ratio % Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Aeon Credit Service (Asia) Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Aeon Credit Service (Asia) Co's Sloan Ratio % falls into.
Aeon Credit Service (Asia) 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.
Aeon Credit Service (Asia) Co's Net Income for the trailing twelve months (TTM) ended in Feb. 2024 was 96.967 (May. 2023 ) + 94.459 (Aug. 2023 ) + 90.837 (Nov. 2023 ) + 110.007 (Feb. 2024 ) = HK$392 Mil.
Aeon Credit Service (Asia) Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2024 was -187.229 (May. 2023 ) + -140.298 (Aug. 2023 ) + -232.439 (Nov. 2023 ) + -77.431 (Feb. 2024 ) = HK$-637 Mil.
Aeon Credit Service (Asia) Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Feb. 2024 was -58.285 (May. 2023 ) + -10.493 (Aug. 2023 ) + -17.183 (Nov. 2023 ) + -35.238 (Feb. 2024 ) = HK$-121 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.
Aeon Credit Service (Asia) Co (HKSE:00900) 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 Feb. 2024, Aeon Credit Service (Asia) Co has a Sloan Ratio of 15.22%, indicating there is a warning stage of accrual build up.
Aeon Credit Service (Asia) Co Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Aeon Credit Service (Asia) Co's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Aeon Credit Service (Asia) Co (HKSE:00900) Business Description
Aeon Credit Service (Asia) Co Ltd is engaged in the consumer finance business. Its activities include the issuance of credit cards and the provision of personal loan financing, insurance agency and brokerage business and microfinance business. The group's business comprises three operating segments, namely Credit card, Personal loans, and Insurance. It derives key revenue from the Credit card operation which involves the provision of credit card services to individuals and acquiring services for member-stores. Personal loans segment provides personal loan financing to individuals and the Insurance segment offers insurance agency and brokerage services. Geographically, the group has a business presence in Hong Kong and the PRC, of which a majority of the revenue is derived from Hong Kong.
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