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.
As of Mar. 2026, Guotai Haitong Securities Co has a Sloan Ratio of -2.46%, indicating the company is in the safe zone and there is no funny business with accruals.
Guotai Haitong Securities Co (OTCPK:GUOSF) 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. 2026, Guotai Haitong Securities Co has a Sloan Ratio of -2.46%, indicating the company is in the safe zone and there is no funny business with accruals.
Guotai Haitong Securities Co Sloan Ratio % Related Terms
Guotai Haitong Securities Co 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.
For the Capital Markets subindustry, Guotai Haitong Securities 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.
Guotai Haitong Securities Co Sloan Ratio % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Guotai Haitong Securities Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Guotai Haitong Securities Co's Sloan Ratio % falls into.
Guotai Haitong Securities 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.
Guotai Haitong Securities Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 486.763 (Jun. 2025 ) + 889.594 (Sep. 2025 ) + 814.257 (Dec. 2025 ) + 926.926 (Mar. 2026 ) = $3,118 Mil.
Guotai Haitong Securities Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 8789.564 (Jun. 2025 ) + 2688.141 (Sep. 2025 ) + 6910.22 (Dec. 2025 ) + 7881.248 (Mar. 2026 ) = $26,269 Mil.
Guotai Haitong Securities Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -82.815 (Jun. 2025 ) + -4298.543 (Sep. 2025 ) + -3571.74 (Dec. 2025 ) + -7121.77 (Mar. 2026 ) = $-15,075 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.
Guotai Haitong Securities Co (GUOSF) has a Sloan Ratio % of -2.46% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Guotai Haitong Securities Co and its competitors.
Is Guotai Haitong Securities Co's Sloan Ratio % too high?
Guotai Haitong Securities Co's current Sloan Ratio % is -2.46%. Overall, Guotai Haitong Securities Co has a GF Score™ of 52/100, reflecting its overall financial health beyond just this single metric.
How does Guotai Haitong Securities Co's Sloan Ratio % compare to MS and GS?
Guotai Haitong Securities Co's Sloan Ratio % of -2.46% can be compared against companies in the Capital Markets industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Capital Markets company?
A good Sloan Ratio % depends on the Capital Markets industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Guotai Haitong Securities Co and its competitors. Guotai Haitong Securities Co's current Sloan Ratio % is -2.46%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guotai Haitong Securities Co stock overvalued right now?
Guotai Haitong Securities Co (GUOSF) has a current Sloan Ratio % of -2.46%. The stock's GF Value™ is $1.99, compared to a current price of $2.00 — trading 0.5% above its estimated fair value. The current Sloan Ratio % is -2.46%. Guotai Haitong Securities Co's overall GF Score™ is 52/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Guotai Haitong Securities Co (GUOSF), the current Sloan Ratio % is -2.46% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Guotai Haitong Securities Co (GUOSF) Overvalued in 2026?
Based on GuruFocus' analysis, Guotai Haitong Securities Co stock appears to be overvalued.
The current stock price of $2.00 is trading 0.5% above its estimated GF Value™ of $1.99.
Key valuation signals for GUOSF:
Sloan Ratio %: -2.46%
GF Value™: $1.99 vs. price of $2.00 (0.5% above fair value)
No single metric tells the full story. See the GUOSF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guotai Haitong Securities Co Ltd provides financial services across wealth management, investment banking, institutional trading, investment management, and finance lease segments. Its wealth management business offers brokerage, advisory, margin financing, and securities lending services, while investment banking includes underwriting and M&A advisory. The institutional trading segment, the highest revenue contributor, covers institutional services, trading, and investment activities across multiple asset classes. The Group also provides asset and fund management and finance leasing solutions. It generates revenue mainly from fees, commissions, interest income, and investment gains. The company generates the majority of its revenue from Mainland China.
52GF Score
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