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.
Kingold Jewelry's Sloan Ratio for the quarter that ended in Sep. 2019 was 11.23%.
As of Sep. 2019, Kingold Jewelry has a Sloan Ratio of 11.23%, indicating there is a warning stage of accrual build up.
Kingold Jewelry Sloan Ratio % Historical Data
The historical data trend for Kingold Jewelry'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 Kingold Jewelry's Sloan Ratio %
For the Luxury Goods subindustry, Kingold Jewelry'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.
Kingold Jewelry's Sloan Ratio % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Kingold Jewelry's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Kingold Jewelry's Sloan Ratio % falls into.
Kingold Jewelry 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.
Kingold Jewelry's Sloan Ratio for the fiscal year that ended in Dec. 2018 is calculated as
Kingold Jewelry's Net Income for the trailing twelve months (TTM) ended in Sep. 2019 was 9.5 (Dec. 2018 ) + 6.381 (Mar. 2019 ) + 12.589 (Jun. 2019 ) + -24.004 (Sep. 2019 ) = $4 Mil.
Kingold Jewelry's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2019 was -95.681 (Dec. 2018 ) + -96.714 (Mar. 2019 ) + -35.544 (Jun. 2019 ) + 62.361 (Sep. 2019 ) = $-166 Mil.
Kingold Jewelry's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2019 was 0.346 (Dec. 2018 ) + -0.063 (Mar. 2019 ) + -0.261 (Jun. 2019 ) + -202.805 (Sep. 2019 ) = $-203 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.
Kingold Jewelry (GREY:KGJI) 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. 2019, Kingold Jewelry has a Sloan Ratio of 11.23%, indicating there is a warning stage of accrual build up.
Kingold Jewelry Sloan Ratio % Related Terms
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Kingold Jewelry (Kingold Jewelry) Business Description
Kingold Jewelry Inc designs and manufactures 24-karat gold jewelry and Chinese ornaments. The company along with its subsidiaries develops markets and sells products including gold necklaces, rings, earrings, bracelets, and pendants to the jewelry market in China. The company also sells gold bars and coins and other products through various banks in China. It derives most of its revenues from the sales of 24-karat jewelry and Chinese ornaments and from design and processing fees.
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