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 Sino-Ocean Group Holding's Sloan Ratio %
For the Real Estate - Development subindustry, Sino-Ocean 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.
Sino-Ocean Group Holding's Sloan Ratio % Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, Sino-Ocean Group Holding's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sino-Ocean Group Holding's Sloan Ratio % falls into.
Sino-Ocean 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.
Sino-Ocean Group Holding's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Sino-Ocean Group Holding's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -20091.905 (Jun. 2023 ) + -2983.076 (Dec. 2023 ) = HK$-23,075 Mil.
Sino-Ocean Group Holding's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 1917.914 (Jun. 2023 ) + -134.966 (Dec. 2023 ) = HK$1,783 Mil.
Sino-Ocean Group Holding's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 5567.927 (Jun. 2023 ) + 1551.441 (Dec. 2023 ) = HK$7,119 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.
Sino-Ocean Group Holding (HKSE:03377) 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 Dec. 2023, Sino-Ocean Group Holding has a Sloan Ratio of -14.18%, indicating there is a warning stage of accrual build up.
Sino-Ocean Group Holding Sloan Ratio % Related Terms
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Sino-Ocean Group Holding (HKSE:03377) Business Description
Sino-Ocean Group Holding Ltd is a real estate company engaged in property development and property investment in China. The company focuses on mid-to-high-end residential property development, investment, and operation of urban property complexes and offices, property services, community O2O, senior living, medical care, shared offices, real estate funds, equity investments, asset management, and overseas investments. It operates in three segments; property development, property management, and property investment. Property development businesses are further segregated geographically into Beijing, Bohai Rim Region, Eastern China, Southern China, Central China, and Western China.
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