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.
Essex Bio-Technology's Sloan Ratio for the quarter that ended in Jun. 2024 was -2.18%.
As of Jun. 2024, Essex Bio-Technology has a Sloan Ratio of -2.18%, indicating the company is in the safe zone and there is no funny business with accruals.
Essex Bio-Technology Sloan Ratio % Historical Data
The historical data trend for Essex Bio-Technology'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 Essex Bio-Technology's Sloan Ratio %
For the Drug Manufacturers - Specialty & Generic subindustry, Essex Bio-Technology'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.
Essex Bio-Technology's Sloan Ratio % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Essex Bio-Technology's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Essex Bio-Technology's Sloan Ratio % falls into.
Essex Bio-Technology 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.
Essex Bio-Technology'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.
Essex Bio-Technology's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was 105.449 (Dec. 2023 ) + 157.44 (Jun. 2024 ) = HK$263 Mil.
Essex Bio-Technology's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was 184.199 (Dec. 2023 ) + 131.664 (Jun. 2024 ) = HK$316 Mil.
Essex Bio-Technology's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was 52.461 (Dec. 2023 ) + -40.824 (Jun. 2024 ) = HK$12 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.
Essex Bio-Technology (HKSE:01061) 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, Essex Bio-Technology has a Sloan Ratio of -2.18%, indicating the company is in the safe zone and there is no funny business with accruals.
Essex Bio-Technology Sloan Ratio % Related Terms
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Essex Bio-Technology Ltd is principally engaged in investment holding and development, manufacture and sale of biologic drugs in the People's Republic of China. The company is made up of segments of Ophthalmology products and Surgical products. Its products under Ophthalmology include the Beifushu series, Tobramycin Eye Drops, Levofloxacin Eye Drops, Sodium Hyaluronate Eye Drops. The products under Surgical include the Beifuji series, Carisolv dental caries removal gel and mouth wash. The majority of the groups revenue comes from PRC.
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