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.
CPMC Holdings's Sloan Ratio for the quarter that ended in Jun. 2024 was -1.40%.
As of Jun. 2024, CPMC Holdings has a Sloan Ratio of -1.40%, indicating the company is in the safe zone and there is no funny business with accruals.
CPMC Holdings Sloan Ratio % Historical Data
The historical data trend for CPMC 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 CPMC Holdings's Sloan Ratio %
For the Packaging & Containers subindustry, CPMC 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.
CPMC Holdings's Sloan Ratio % Distribution in the Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, CPMC Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where CPMC Holdings's Sloan Ratio % falls into.
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.
CPMC 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.
CPMC Holdings's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was 220.387 (Dec. 2023 ) + 287.362 (Jun. 2024 ) = HK$508 Mil.
CPMC Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was 829.696 (Dec. 2023 ) + 270.585 (Jun. 2024 ) = HK$1,100 Mil.
CPMC Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was -175.175 (Dec. 2023 ) + -200.799 (Jun. 2024 ) = HK$-376 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.
CPMC Holdings (HKSE:00906) 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, CPMC Holdings has a Sloan Ratio of -1.40%, indicating the company is in the safe zone and there is no funny business with accruals.
CPMC Holdings Sloan Ratio % Related Terms
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CPMC Holdings Ltd is an investment holding company engaged in the manufacturing and sales of packaging products used for consumer goods such as food, beverages, and household chemical products. The company operates in three segments; Tinplate packaging includes tinplate packaging products, which include, milk powder cans, aerosol cans, metal caps, steel barrels, and other metal packaging, Aluminum packaging includes aluminum packaging products of two-piece beverage cans and one-piece bottles, and Plastic packaging includes plastic packaging products used for milk bottles, shampoo bottles, plastic devices of electronic products, daily use hardware, package printing, sports drink bottles, and related plastic-made products.
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