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.
Geovis Technology Co's Sloan Ratio for the quarter that ended in Mar. 2024 was 17.54%.
As of Mar. 2024, Geovis Technology Co has a Sloan Ratio of 17.54%, indicating there is a warning stage of accrual build up.
Geovis Technology Co Sloan Ratio % Historical Data
The historical data trend for Geovis Technology Co'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 Geovis Technology Co's Sloan Ratio %
For the Software - Application subindustry, Geovis Technology 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.
Geovis Technology Co's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, Geovis Technology Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Geovis Technology Co's Sloan Ratio % falls into.
Geovis Technology 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.
Geovis Technology Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Geovis Technology Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 30.202 (Jun. 2023 ) + 67.804 (Sep. 2023 ) + 239.428 (Dec. 2023 ) + 1.94 (Mar. 2024 ) = ¥339 Mil.
Geovis Technology Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -23.247 (Jun. 2023 ) + -150.565 (Sep. 2023 ) + 513.009 (Dec. 2023 ) + -404.724 (Mar. 2024 ) = ¥-66 Mil.
Geovis Technology Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -67.526 (Jun. 2023 ) + -297.946 (Sep. 2023 ) + -198.771 (Dec. 2023 ) + -71.344 (Mar. 2024 ) = ¥-636 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.
Geovis Technology Co (SHSE:688568) 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 Mar. 2024, Geovis Technology Co has a Sloan Ratio of 17.54%, indicating there is a warning stage of accrual build up.
Geovis Technology Co Sloan Ratio % Related Terms
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Geovis Technology Co (SHSE:688568) Business Description
Geovis Technology Co Ltd is engaged in provision of digital earth products and technology development services. The technology of remote sensing, geographic information system, satellite positioning and navigation, virtual reality, and other independent research and development of the company digital earth products have a position in the domestic digital earth industry. The company provides software sales and data services, technology development services, digital earth integrated machines and system integration with GEOVIS digital earth products as the core for users in the government, enterprises and special fields.
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