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, Sinopec Kantons Holdings has a Sloan Ratio of -1.26%, indicating the company is in the safe zone and there is no funny business with accruals.
Sinopec Kantons 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 Sinopec Kantons Holdings's Sloan Ratio %
For the Oil & Gas Midstream subindustry, Sinopec Kantons 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.
Sinopec Kantons Holdings's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Sinopec Kantons Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sinopec Kantons Holdings's Sloan Ratio % falls into.
Sinopec Kantons 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.
Sinopec Kantons 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.
Sinopec Kantons Holdings's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was 554.423 (Dec. 2023 ) + 685.367 (Jun. 2024 ) = HK$1,239.8 Mil.
Sinopec Kantons Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was 720.801 (Dec. 2023 ) + -93.755 (Jun. 2024 ) = HK$627.0 Mil.
Sinopec Kantons Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was 913.249 (Dec. 2023 ) + -97.013 (Jun. 2024 ) = HK$816.2 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.
Sinopec Kantons Holdings (HKSE:00934) 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, Sinopec Kantons Holdings has a Sloan Ratio of -1.26%, indicating the company is in the safe zone and there is no funny business with accruals.
Sinopec Kantons Holdings Sloan Ratio % Related Terms
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Sinopec Kantons Holdings Ltd is a company that operates in the storage, logistics, and trading industry. It provides crude oil and oil product terminals, ancillary facilities, and logistics services including storage, transportation, and terminal services. The company has two main segments: the crude oil jetty and storage services segment which caters to crude oil transportation, unloading, storage, and other jetty services for oil tankers in the PRC, Europe, and the Middle East, and the vessel chartering and logistics services segment which provides vessel chartering services for liquefied natural gas transportation in the PRC, Australia, and Papua New Guinea. The majority of the company's revenue is generated from the crude oil jetty and storage services segment.
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