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.
Domaine Power Holdings's Sloan Ratio for the quarter that ended in Sep. 2023 was 19.13%.
As of Sep. 2023, Domaine Power Holdings has a Sloan Ratio of 19.13%, indicating there is a warning stage of accrual build up.
Domaine Power 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 Domaine Power Holdings's Sloan Ratio %
For the Luxury Goods subindustry, Domaine Power 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.
Domaine Power Holdings's Sloan Ratio % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Domaine Power Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Domaine Power Holdings's Sloan Ratio % falls into.
Domaine Power 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.
Domaine Power Holdings's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Domaine Power Holdings's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was -10.99 (Mar. 2023 ) + -9.048 (Sep. 2023 ) = HK$-20.0 Mil.
Domaine Power Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was -21.745 (Mar. 2023 ) + -17.474 (Sep. 2023 ) = HK$-39.2 Mil.
Domaine Power Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was 0.412 (Mar. 2023 ) + -0.315 (Sep. 2023 ) = HK$0.1 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.
Domaine Power Holdings (HKSE:00442) 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. 2023, Domaine Power Holdings has a Sloan Ratio of 19.13%, indicating there is a warning stage of accrual build up.
Domaine Power Holdings Sloan Ratio % Related Terms
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Domaine Power Holdings (HKSE:00442) Business Description
Domaine Power Holdings Ltd is engaged in the manufacture and sale of jewelry products the trading of precious metals and raw jewellery materials. It is engaged in designing, manufacturing, and exporting fine jewelry to jewelry wholesalers and retailers mainly in America, European countries, China, and the Middle East. It offers a wide range of fine jewelry products in karat gold, including bracelets, bangles, brooches, earrings, pendants, rings, necklaces, cufflinks, and anklets. It generates the majority of its revenue from Hong Kong.
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