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, Automated Systems Holdings has a Sloan Ratio of 8.95%, indicating the company is in the safe zone and there is no funny business with accruals.
Automated Systems 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 Automated Systems Holdings's Sloan Ratio %
For the Information Technology Services subindustry, Automated Systems 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.
Automated Systems Holdings's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, Automated Systems Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Automated Systems Holdings's Sloan Ratio % falls into.
Automated Systems 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.
Automated Systems Holdings's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was 40.228 (Dec. 2023 ) + 38.101 (Jun. 2024 ) = HK$78 Mil.
Automated Systems Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was -102.911 (Dec. 2023 ) + 223.527 (Jun. 2024 ) = HK$121 Mil.
Automated Systems Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was -279.27 (Dec. 2023 ) + -51.953 (Jun. 2024 ) = HK$-331 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.
Automated Systems Holdings (HKSE:00771) 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, Automated Systems Holdings has a Sloan Ratio of 8.95%, indicating the company is in the safe zone and there is no funny business with accruals.
Automated Systems Holdings Sloan Ratio % Related Terms
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Automated Systems Holdings Ltd operates as an investment holding company, which provides corporate management services. It operates through the following segments: Information Technology Products and Information Technology Services. The IT Products segment engages in the business of information technology in supplying of information technology and associated products. The IT Services segment engages in the business of information technology in providing systems integration, software and consulting services, engineering support for products and solutions, and managed services. Its geographical presence in Hong Kong, Mainland China, United States, Europe, Taiwan, Macau, Thailand, Singapore and Malaysia.
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