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 Sep. 2023, China South City Holdings has a Sloan Ratio of -4.70%, indicating the company is in the safe zone and there is no funny business with accruals.
China South City Holdings 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 China South City Holdings's Sloan Ratio %
For the Real Estate - Development subindustry, China South City 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.
China South City Holdings's Sloan Ratio % Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, China South City Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where China South City Holdings's Sloan Ratio % falls into.
China South City 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.
China South City Holdings's Sloan Ratio for the fiscal year that ended in Mar. 2022 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
China South City Holdings's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was 443.163 (Mar. 2023 ) + -621.243 (Sep. 2023 ) = HK$-178 Mil.
China South City Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was 834.896 (Mar. 2023 ) + 1602.791 (Sep. 2023 ) = HK$2,438 Mil.
China South City Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was 2757.205 (Mar. 2023 ) + -513.477 (Sep. 2023 ) = HK$2,244 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.
China South City Holdings (HKSE:01668) 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. 2023, China South City Holdings has a Sloan Ratio of -4.70%, indicating the company is in the safe zone and there is no funny business with accruals.
China South City Holdings Sloan Ratio % Related Terms
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China South City Holdings (HKSE:01668) Business Description
China South City Holdings Ltd develops and operates large-scale integrated logistics and trade centers in China. It operates in three segments that include property development, property investment and management, and others. The majority of the revenue is generated from the property development segments that include the development of integrated logistics and trade centers and residential and commercial ancillary facilities. The majority of its operations are conducted in the People's Republic of China.
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