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 Dec. 2023, Zhuguang Holdings Group Co has a Sloan Ratio of -8.67%, indicating the company is in the safe zone and there is no funny business with accruals.
Zhuguang Holdings Group Co 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 Zhuguang Holdings Group Co's Sloan Ratio %
For the Real Estate Services subindustry, Zhuguang Holdings Group 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.
Zhuguang Holdings Group Co's Sloan Ratio % Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, Zhuguang Holdings Group Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Zhuguang Holdings Group Co's Sloan Ratio % falls into.
Zhuguang Holdings Group 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.
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Zhuguang Holdings Group Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -66.923 (Jun. 2023 ) + -804.087 (Dec. 2023 ) = HK$-871 Mil.
Zhuguang Holdings Group Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 915.779 (Jun. 2023 ) + 950.565 (Dec. 2023 ) = HK$1,866 Mil.
Zhuguang Holdings Group Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 23.674 (Jun. 2023 ) + 348.516 (Dec. 2023 ) = HK$372 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.
Zhuguang Holdings Group Co (HKSE:01176) 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, Zhuguang Holdings Group Co has a Sloan Ratio of -8.67%, indicating the company is in the safe zone and there is no funny business with accruals.
Zhuguang Holdings Group Co Sloan Ratio % Related Terms
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Zhuguang Holdings Group Co (HKSE:01176) Business Description
Zhuguang Holdings Group Co Ltd engages in property development, property investment, project management, and other property development related services in the People's Republic of China. The company's core investment projects take place in tier-one and tier-two cities in China. The group's key projects include Zhuguang Yujing Scenic Garden, Pearl Yijing, Pearl Tianhu Yujing Garden, Zhuguang Financial Town One, Pearl Xincheng Yujing, and many others. The sale of properties from the Property Development Segment are responsible for most of the company's revenue. The company earns its revenue in both Hong Kong and Mainland China.
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