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 Sep. 2024, Xinhua News Media Holdings has a Sloan Ratio of 2.09%, indicating the company is in the safe zone and there is no funny business with accruals.
Xinhua News Media Holdings 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 Xinhua News Media Holdings's Sloan Ratio %
For the Specialty Business Services subindustry, Xinhua News Media 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.
Xinhua News Media Holdings's Sloan Ratio % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Xinhua News Media Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Xinhua News Media Holdings's Sloan Ratio % falls into.
Xinhua News Media 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.
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Xinhua News Media Holdings's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was -5.19 (Mar. 2024 ) + -3.549 (Sep. 2024 ) = HK$-8.7 Mil. Xinhua News Media Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was -9.265 (Mar. 2024 ) + -12.106 (Sep. 2024 ) = HK$-21.4 Mil. Xinhua News Media Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was 11.524 (Mar. 2024 ) + -2.309 (Sep. 2024 ) = HK$9.2 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.
Xinhua News Media Holdings (HKSE:00309) 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 Sep. 2024, Xinhua News Media Holdings has a Sloan Ratio of 2.09%, indicating the company is in the safe zone and there is no funny business with accruals.
Xinhua News Media Holdings Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Xinhua News Media Holdings's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Xinhua News Media Holdings Ltd is engaged in the business of the provision of cleaning and related services and the provision of medical waste treatment services. It has operating segments as follows: Cleaning and Related Services segment engages in the provision of cleaning and related services; Advertising media business segment engages in the provision of media strategy; Waste Treatment business segment engages in the provision of organic waste treatment. The group operates in Hong Kong and China, of which prime revenue is derived from Hong Kong.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
HKSE:00309 has been successfully added to your 