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.
Major Holdings's Sloan Ratio for the quarter that ended in Sep. 2024 was 0.00%.
As of Sep. 2024, Major Holdings has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Major Holdings Sloan Ratio % Historical Data
The historical data trend for Major Holdings'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 Major Holdings's Sloan Ratio %
For the Beverages - Wineries & Distilleries subindustry, Major 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.
Major Holdings's Sloan Ratio % Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Major Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Major Holdings's Sloan Ratio % falls into.
Major 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.
Major Holdings's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Major Holdings's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was -10.972 (Mar. 2024 ) + -7.458 (Sep. 2024 ) = HK$-18.43 Mil.
Major Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was -2.639 (Mar. 2024 ) + -8.86 (Sep. 2024 ) = HK$-11.50 Mil.
Major Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was 0 (Mar. 2024 ) + 0 (Sep. 2024 ) = HK$0.00 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.
Major Holdings (HKSE:01389) 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 Sep. 2024, Major Holdings has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Major Holdings Sloan Ratio % Related Terms
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Major Holdings Ltd is an investment holding company. The company is principally engaged in the distribution of wine and spirit products and wine accessory products in Hong Kong. The products of the company include Red wine, White wine, Sparkling wine, Spirits, Sake, Wine accessory products, and other products. The group offers products through its retail showrooms, a network of distributors, retail organizations, five-star hotels, and private clubs. The majority of the revenue of the company is derived from Hong Kong.
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