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.
Tibet Water Resources's Sloan Ratio for the quarter that ended in Jun. 2024 was -8.28%.
As of Jun. 2024, Tibet Water Resources has a Sloan Ratio of -8.28%, indicating the company is in the safe zone and there is no funny business with accruals.
Tibet Water Resources Sloan Ratio % Historical Data
The historical data trend for Tibet Water Resources'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 Tibet Water Resources's Sloan Ratio %
For the Beverages - Brewers subindustry, Tibet Water Resources'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.
Tibet Water Resources's Sloan Ratio % Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Tibet Water Resources's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Tibet Water Resources'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.
Tibet Water Resources'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.
Tibet Water Resources's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was -371.229 (Dec. 2023 ) + 9.729 (Jun. 2024 ) = HK$-361.5 Mil.
Tibet Water Resources's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was -269.96 (Dec. 2023 ) + 102.508 (Jun. 2024 ) = HK$-167.5 Mil.
Tibet Water Resources's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was 132.355 (Dec. 2023 ) + 19.206 (Jun. 2024 ) = HK$151.6 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.
Tibet Water Resources (HKSE:01115) 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, Tibet Water Resources has a Sloan Ratio of -8.28%, indicating the company is in the safe zone and there is no funny business with accruals.
Tibet Water Resources Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Tibet Water Resources's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Tibet Water Resources Ltd is an investment holding company engaged in the production and sales of water products and beer products in the PRC and the provision of lending services to third parties in Hong Kong with relevant licenses. Its flagship brand is 5100 Glacial Spring Water. Its beer is Highland barley beer. Its business is reported in two segments, the Water business segment and the Beer business segment. It generates the majority of its revenue from the Beer business segment. Its geographic areas are PRC and Hong Kong, it generates the majority of its revenue from the PRC.
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