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.
Power Assets Holdings's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.26%.
As of Dec. 2023, Power Assets Holdings has a Sloan Ratio of 0.26%, indicating the company is in the safe zone and there is no funny business with accruals.
Power Assets Holdings Sloan Ratio % Historical Data
The historical data trend for Power Assets Holdings'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 Power Assets Holdings's Sloan Ratio %
For the Utilities - Independent Power Producers subindustry, Power Assets Holdings'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.
Power Assets Holdings's Sloan Ratio % Distribution in the Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Power Assets Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Power Assets Holdings's Sloan Ratio % falls into.
Power Assets Holdings 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.
Power Assets Holdings'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.
Power Assets Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 377.761 (Jun. 2023 ) + 389.767 (Dec. 2023 ) = $767.5 Mil.
Power Assets Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 78.259 (Jun. 2023 ) + 67.223 (Dec. 2023 ) = $145.5 Mil.
Power Assets Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 313.928 (Jun. 2023 ) + 275.679 (Dec. 2023 ) = $589.6 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.
Power Assets Holdings (OTCPK:HGKGY) 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, Power Assets Holdings has a Sloan Ratio of 0.26%, indicating the company is in the safe zone and there is no funny business with accruals.
Power Assets Holdings Sloan Ratio % Related Terms
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Power Assets Holdings (Power Assets Holdings) Business Description
Power Assets Holdings is an investment holding company with a focus on regulated utility assets. The firm owns a portfolio of regulated electricity and gas assets and similarly stable utilities in Hong Kong, the U.K., Australia, Canada, Europe, and New Zealand. Profit from its regulated assets make up around 80% of total income, with contribution from its U.K. and Australian assets totaling more than 60% of group profit. The firm is part of CK Hutchison Holdings, a Hong Kong-based multinational conglomerate, and is currently 36% owned by CK Infrastructure Holdings.
Power Assets Holdings (Power Assets Holdings) Headlines
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