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 Jun. 2024, Tiande Chemical Holdings has a Sloan Ratio of 7.01%, indicating the company is in the safe zone and there is no funny business with accruals.
Tiande Chemical 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 Tiande Chemical Holdings's Sloan Ratio %
For the Chemicals subindustry, Tiande Chemical 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.
Tiande Chemical Holdings's Sloan Ratio % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Tiande Chemical Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Tiande Chemical Holdings's Sloan Ratio % falls into.
Tiande Chemical 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.
Tiande Chemical Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Tiande Chemical Holdings's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was 49.191 (Dec. 2023 ) + 45.599 (Jun. 2024 ) = HK$95 Mil.
Tiande Chemical Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was 240.29 (Dec. 2023 ) + 163.468 (Jun. 2024 ) = HK$404 Mil.
Tiande Chemical Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was -309.367 (Dec. 2023 ) + -225.363 (Jun. 2024 ) = HK$-535 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.
Tiande Chemical Holdings (HKSE:00609) 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 Jun. 2024, Tiande Chemical Holdings has a Sloan Ratio of 7.01%, indicating the company is in the safe zone and there is no funny business with accruals.
Tiande Chemical Holdings Sloan Ratio % Related Terms
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Tiande Chemical Holdings Ltd, through its subsidiaries is an investment holding company whose principal business includes research and development, manufacture, and sales of chemical products. Its product offering includes Cyanoacrylate monomer, Malonate series, Edta series and Cyanoacetate series of products. The group derives revenue from the sales made in the PRC, India, U.S., Taiwan, U.K and Other countries, of which prime revenue is derived from the PRC.
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