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.
Wai Kee Holdings's Sloan Ratio for the quarter that ended in Jun. 2024 was -12.63%.
As of Jun. 2024, Wai Kee Holdings has a Sloan Ratio of -12.63%, indicating there is a warning stage of accrual build up.
Wai Kee Holdings Sloan Ratio % Historical Data
The historical data trend for Wai Kee Holdings'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 Wai Kee Holdings's Sloan Ratio %
For the Engineering & Construction subindustry, Wai Kee 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.
Wai Kee Holdings's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Wai Kee Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Wai Kee Holdings's Sloan Ratio % falls into.
Wai Kee 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.
Wai Kee 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.
Wai Kee Holdings's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was -1157.068 (Dec. 2023 ) + -414.693 (Jun. 2024 ) = HK$-1,572 Mil.
Wai Kee Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was 191.801 (Dec. 2023 ) + 128.603 (Jun. 2024 ) = HK$320 Mil.
Wai Kee Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was -0.66 (Dec. 2023 ) + 2.709 (Jun. 2024 ) = HK$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.
Wai Kee Holdings (HKSE:00610) 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, Wai Kee Holdings has a Sloan Ratio of -12.63%, indicating there is a warning stage of accrual build up.
Wai Kee Holdings Sloan Ratio % Related Terms
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Wai Kee Holdings Ltd is engaged in construction and material businesses. It operates through four business segments. The Construction, sewage treatment and steam fuel segment, which is the key revenue generating segment, is engaged in the construction of civil engineering and building projects and operation of sewage treatment plant and steam fuel plant. Construction Materials segment is engaged in the production and sales of concrete and asphalt. Quarrying segment is engaged in the production and sales of quarry products. Property development and investment, toll road, investment and asset management segment is engaged in the strategic investment in Road King, an associate of the Group. Its prime geographical areas of operation includes Hong Kong and China.
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