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 Dec. 2023, Asia Enterprises Holding has a Sloan Ratio of -4.84%, indicating the company is in the safe zone and there is no funny business with accruals.
Asia Enterprises Holding 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 Asia Enterprises Holding's Sloan Ratio %
For the Steel subindustry, Asia Enterprises 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.
Asia Enterprises Holding's Sloan Ratio % Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Asia Enterprises Holding's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Asia Enterprises Holding's Sloan Ratio % falls into.
Asia Enterprises 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.
Asia Enterprises 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.
Asia Enterprises Holding's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 2.791 (Jun. 2023 ) + 3.273 (Dec. 2023 ) = S$6.06 Mil.
Asia Enterprises Holding's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -9.7 (Jun. 2023 ) + 18.42 (Dec. 2023 ) = S$8.72 Mil.
Asia Enterprises Holding's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 0.665 (Jun. 2023 ) + 2.26 (Dec. 2023 ) = S$2.93 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.
Asia Enterprises Holding (SGX:A55) 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, Asia Enterprises Holding has a Sloan Ratio of -4.84%, indicating the company is in the safe zone and there is no funny business with accruals.
Asia Enterprises Holding Sloan Ratio % Related Terms
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Asia Enterprises Holding (SGX:A55) Business Description
Asia Enterprises Holding Ltd is an investment holding firm. It's in the distribution of steel products to marine and Offshore Industries. The company operates through three segments namely, Steel distribution comprises of procuring, distributing, and trading of steel products; the Provision of steel processing segment is involved in the processing of steel materials for sale and the corporate segment is engaged in investment and management activities. Most of its revenue is earned from the Steel distribution segment. Geographically, it derives majority revenue from the Singapore market, while it also has a presence in Indonesia, Malaysia, and other countries.
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