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.
Chaowei Power Holdings's Sloan Ratio for the quarter that ended in Jun. 2024 was -1.47%.
As of Jun. 2024, Chaowei Power Holdings has a Sloan Ratio of -1.47%, indicating the company is in the safe zone and there is no funny business with accruals.
Chaowei Power 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 Chaowei Power Holdings's Sloan Ratio %
For the Auto Parts subindustry, Chaowei Power 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.
Chaowei Power Holdings's Sloan Ratio % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Chaowei Power Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Chaowei Power Holdings's Sloan Ratio % falls into.
Chaowei Power 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.
Chaowei Power 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.
Chaowei Power Holdings's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was 101.873 (Dec. 2023 ) + 218.92 (Jun. 2024 ) = HK$321 Mil.
Chaowei Power Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was 975.375 (Dec. 2023 ) + 34.213 (Jun. 2024 ) = HK$1,010 Mil.
Chaowei Power Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was 115.134 (Dec. 2023 ) + -438.768 (Jun. 2024 ) = HK$-324 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.
Chaowei Power Holdings (HKSE:00951) 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, Chaowei Power Holdings has a Sloan Ratio of -1.47%, indicating the company is in the safe zone and there is no funny business with accruals.
Chaowei Power Holdings Sloan Ratio % Related Terms
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Chaowei Power Holdings Ltd is engaged in the manufacturing and sales of lead-acid motive batteries, lithium-ion batteries and other related products, which are primarily used in electric bikes, electric tricycles and special-purpose electric vehicles. The largest business segment is the production of lead-acid batteries for electric bikes. Smaller segments produce lithium-ion batteries and related products. The company supplies its batteries directly to electric bike manufacturers, as well as to a network of independent distributors selling batteries on the secondary market. Nearly all of Chaowei Power's revenue is generated in China.
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