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.
Hutchison Whampoa's Sloan Ratio for the quarter that ended in Dec. 2014 was 6.18%.
As of Dec. 2014, Hutchison Whampoa has a Sloan Ratio of 6.18%, indicating the company is in the safe zone and there is no funny business with accruals.
Hutchison Whampoa Sloan Ratio % Historical Data
The historical data trend for Hutchison Whampoa'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 Hutchison Whampoa's Sloan Ratio %
For the Department Stores subindustry, Hutchison Whampoa'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.
Hutchison Whampoa's Sloan Ratio % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Hutchison Whampoa's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Hutchison Whampoa's Sloan Ratio % falls into.
Hutchison Whampoa 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.
Hutchison Whampoa's Sloan Ratio for the fiscal year that ended in Dec. 2014 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Hutchison Whampoa's Net Income for the trailing twelve months (TTM) ended in Dec. 2014 was 3533.97 (Jun. 2014 ) + 4657.49 (Dec. 2014 ) = €8,191 Mil.
Hutchison Whampoa's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2014 was 2007.394 (Jun. 2014 ) + 5011.945 (Dec. 2014 ) = €7,019 Mil.
Hutchison Whampoa's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2014 was -893.842 (Jun. 2014 ) + -3646.315 (Dec. 2014 ) = €-4,540 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.
Hutchison Whampoa (FRA:HUWH) 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. 2014, Hutchison Whampoa has a Sloan Ratio of 6.18%, indicating the company is in the safe zone and there is no funny business with accruals.
Hutchison Whampoa Sloan Ratio % Related Terms
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Hutchison Whampoa Ltd is a multinational conglomerate engaged in the development, innovation and technology in various sector. The Company has six businesses segments: ports and related services, property and hotels, retail, infrastructure, energy, and telecommunications. The Company holds interests in 52 ports comprising 278 operational berths in 26 countries, including container terminals operating in five of the 10 busiest container ports in the world. It also engages in mid-stream operations, river trade, cruise terminal operations and ports related logistics services. It develops and invests in real estate projects, ranging from landmark office buildings to luxury residential properties. It holds a rental property portfolio of approximately 14.0 million square feet of office, commercial, industrial and residential premises, primarily in Hong Kong, as well as interests in a number of joint-venture developments in Mainland China and selective overseas markets. The Company has over 10,500 retail stores in 25 markets worldwide. Its retail portfolio comprises health and beauty products, supermarkets, consumer electronics and electrical appliances. The Company's infrastructure business operates mainly in Hong Kong, the United Kingdom, the Netherlands, the Mainland, Australia, New Zealand and Canada. The Company's investments in energy are principally in Canada, the United States, the Mainland, Taiwan, Greenland and Indonesia. Husky Energy Inc is a listed Canadian-based integrated energy and energy related company. The Company is an operator of mobile telecommunication and data services, and a mobile broadband technology in the world. It is also an owner and operator of fibre-optic fixed line networks in Hong Kong.
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