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.
As of Feb. 2024, Second Chance Properties has a Sloan Ratio of 1.91%, indicating the company is in the safe zone and there is no funny business with accruals.
Second Chance Properties Sloan Ratio % Historical Data
* 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 Second Chance Properties's Sloan Ratio %
For the Luxury Goods subindustry, Second Chance Properties'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.
Second Chance Properties's Sloan Ratio % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Second Chance Properties's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Second Chance Properties's Sloan Ratio % falls into.
Second Chance Properties 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.
Second Chance Properties's Sloan Ratio for the fiscal year that ended in Aug. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Second Chance Properties's Net Income for the trailing twelve months (TTM) ended in Feb. 2024 was 10.447 (Aug. 2023 ) + 4.349 (Feb. 2024 ) = S$14.80 Mil.
Second Chance Properties's Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2024 was 12.585 (Aug. 2023 ) + 1.429 (Feb. 2024 ) = S$14.01 Mil.
Second Chance Properties's Cash Flow from Investing for the trailing twelve months (TTM) ended in Feb. 2024 was -27.265 (Aug. 2023 ) + 21.208 (Feb. 2024 ) = S$-6.06 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.
Second Chance Properties (SGX:528) 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, Second Chance Properties has a Sloan Ratio of 1.91%, indicating the company is in the safe zone and there is no funny business with accruals.
Second Chance Properties Sloan Ratio % Related Terms
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Second Chance Properties (SGX:528) Business Description
Second Chance Properties Ltd is a Singapore-based investment holding company, retailing of readymade garments, holding of property as investment for rental income and investing in securities. The company operates in four segments: Wearing apparel; Gold & jewelry, which is the key revenue generator; Investment dealing; and Property rental. Its geographical segments include Singapore and Malaysia, of which the vast majority of the revenue comes from Singapore.
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