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.
GDS Holdings's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.10%.
As of Dec. 2023, GDS Holdings has a Sloan Ratio of 0.10%, indicating the company is in the safe zone and there is no funny business with accruals.
GDS Holdings Sloan Ratio % Historical Data
The historical data trend for GDS 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 GDS Holdings's Sloan Ratio %
For the Information Technology Services subindustry, GDS 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.
GDS Holdings's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, GDS Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where GDS Holdings's Sloan Ratio % falls into.
GDS 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.
GDS Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
GDS Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -64.564 (Mar. 2023 ) + -29.202 (Jun. 2023 ) + -54.077 (Sep. 2023 ) + -406.596 (Dec. 2023 ) = €-554 Mil.
GDS Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -17.509 (Mar. 2023 ) + 94.679 (Jun. 2023 ) + 65.538 (Sep. 2023 ) + 121.928 (Dec. 2023 ) = €265 Mil.
GDS Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -297.29 (Mar. 2023 ) + -181.26 (Jun. 2023 ) + -201.887 (Sep. 2023 ) + -148.212 (Dec. 2023 ) = €-829 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.
GDS Holdings (FRA:G40) 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, GDS Holdings has a Sloan Ratio of 0.10%, indicating the company is in the safe zone and there is no funny business with accruals.
GDS Holdings Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of GDS Holdings's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
GDS Holdings started as an IT service provider in 2001 then moved to the data center business with its first self-developed data center opening in 2010. The company now develops and operates data centers in China and also builds, operates and transfers data centers for other clients. It offers colocation and managed services and mainly targets hyperscale cloud service customers who take large areas of its data centers or even whole data centers under long-term contracts. It has aggressively raised capital over the past four years for expansion. Its data centers are located predominantly in and around the Tier 1 cities in China and it has also started an expanding into Southeast Asia. GDS listed on the NASDAQ in 2016 and completed a secondary listing in Hong Kong in 2020.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
FRA:G40 has been successfully added to your 