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, YuanShengTai Dairy Farm has a Sloan Ratio of -3.53%, indicating the company is in the safe zone and there is no funny business with accruals.
YuanShengTai Dairy Farm 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 YuanShengTai Dairy Farm's Sloan Ratio %
For the Farm Products subindustry, YuanShengTai Dairy Farm'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.
YuanShengTai Dairy Farm's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, YuanShengTai Dairy Farm's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where YuanShengTai Dairy Farm's Sloan Ratio % falls into.
YuanShengTai Dairy Farm 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.
YuanShengTai Dairy Farm'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.
YuanShengTai Dairy Farm's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -288.842 (Jun. 2023 ) + -82.714 (Dec. 2023 ) = HK$-372 Mil.
YuanShengTai Dairy Farm's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 581.513 (Jun. 2023 ) + 192.665 (Dec. 2023 ) = HK$774 Mil.
YuanShengTai Dairy Farm's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -542.07 (Jun. 2023 ) + -281.028 (Dec. 2023 ) = HK$-823 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.
YuanShengTai Dairy Farm (HKSE:01431) 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, YuanShengTai Dairy Farm has a Sloan Ratio of -3.53%, indicating the company is in the safe zone and there is no funny business with accruals.
YuanShengTai Dairy Farm Sloan Ratio % Related Terms
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YuanShengTai Dairy Farm (HKSE:01431) Business Description
YuanShengTai Dairy Farm Ltd is a China-based dairy farming company. Along with its subsidiaries, it principally engages in the production and sale of milk in the People's Republic of China. Its dairy farms are in Heilongjiang and Jilin province, which includes Gannan Oumei Farm, Kedong Oumei Farm, Kedong YST Farm, Zhenlai Farm Phase I, Kedong Yongjin Farm, Baiquan Ruixincheng Farm, and Keshan Farm. The group generates revenue from its operations mainly in Mainland China.
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