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.
Cathay Pacific Airways's Sloan Ratio for the quarter that ended in Dec. 2023 was -7.99%.
As of Dec. 2023, Cathay Pacific Airways has a Sloan Ratio of -7.99%, indicating the company is in the safe zone and there is no funny business with accruals.
Cathay Pacific Airways 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 Cathay Pacific Airways's Sloan Ratio %
For the Airlines subindustry, Cathay Pacific Airways'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.
Cathay Pacific Airways's Sloan Ratio % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Cathay Pacific Airways's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Cathay Pacific Airways's Sloan Ratio % falls into.
Cathay Pacific Airways 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.
Cathay Pacific Airways'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.
Cathay Pacific Airways's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 544.874 (Jun. 2023 ) + 706.932 (Dec. 2023 ) = $1,252 Mil.
Cathay Pacific Airways's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 2428.316 (Jun. 2023 ) + 945.863 (Dec. 2023 ) = $3,374 Mil.
Cathay Pacific Airways's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -549.726 (Jun. 2023 ) + 209.736 (Dec. 2023 ) = $-340 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.
Cathay Pacific Airways (OTCPK:CPCAY) 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, Cathay Pacific Airways has a Sloan Ratio of -7.99%, indicating the company is in the safe zone and there is no funny business with accruals.
Cathay Pacific Airways Sloan Ratio % Related Terms
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Cathay Pacific Airways (Cathay Pacific Airways) Business Description
Cathay Pacific Airways is the largest airline group in Hong Kong. It operated a fleet of 222 aircraft as of December 2022 and carried more than 35 million passengers in 2019. Its route network extends to 119 destinations in 35 countries. The group operates the full-service airline Cathay Pacific and the low-cost carrier HK Express. It also runs the cargo carrier Air Hong Kong.
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