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.
Besunyen Holdings Co's Sloan Ratio for the quarter that ended in Dec. 2023 was -45.06%.
Warning Sign:
When sloan ratio (-45.06)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2023, Besunyen Holdings Co has a Sloan Ratio of -45.06%, indicating earnings are more likely to be made up of accruals.
Besunyen Holdings Co Sloan Ratio % Historical Data
The historical data trend for Besunyen Holdings Co'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 Besunyen Holdings Co's Sloan Ratio %
For the Packaged Foods subindustry, Besunyen Holdings Co'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.
Besunyen Holdings Co's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Besunyen Holdings Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Besunyen Holdings Co's Sloan Ratio % falls into.
Besunyen Holdings Co 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.
Besunyen Holdings Co'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.
Besunyen Holdings Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -190.854 (Jun. 2023 ) + -136.452 (Dec. 2023 ) = HK$-327.3 Mil.
Besunyen Holdings Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 96.468 (Jun. 2023 ) + -85.547 (Dec. 2023 ) = HK$10.9 Mil.
Besunyen Holdings Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 19.702 (Jun. 2023 ) + -10.522 (Dec. 2023 ) = HK$9.2 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.
Besunyen Holdings Co (HKSE:00926) 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 Dec. 2023, Besunyen Holdings Co has a Sloan Ratio of -45.06%, indicating earnings are more likely to be made up of accruals.
Besunyen Holdings Co Sloan Ratio % Related Terms
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Besunyen Holdings Co (HKSE:00926) Business Description
Besunyen Holdings Co Ltd is engaged in the production and sales of health food, pharmaceutical ingredients and preparations and food products. The group uses natural Chinese herbal-based medicine and tea leaves as raw materials, researches and develops, formulates and produces the Two Teas. Besunyen Detox Tea and Besunyen Slimming Tea are the company's products. The firm operates in two segments, the Tea products segment and Weight-loss and other medicines segment.
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