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.
AsiaInfo Technologies's Sloan Ratio for the quarter that ended in Dec. 2023 was -4.43%.
As of Dec. 2023, AsiaInfo Technologies has a Sloan Ratio of -4.43%, indicating the company is in the safe zone and there is no funny business with accruals.
AsiaInfo Technologies Sloan Ratio % Historical Data
The historical data trend for AsiaInfo Technologies'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 AsiaInfo Technologies's Sloan Ratio %
For the Software - Application subindustry, AsiaInfo Technologies'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.
AsiaInfo Technologies's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, AsiaInfo Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where AsiaInfo Technologies's Sloan Ratio % falls into.
AsiaInfo Technologies 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.
AsiaInfo Technologies'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.
AsiaInfo Technologies's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 235.943 (Jun. 2023 ) + 347.051 (Dec. 2023 ) = HK$583 Mil.
AsiaInfo Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -514.68 (Jun. 2023 ) + 1150.713 (Dec. 2023 ) = HK$636 Mil.
AsiaInfo Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 282.552 (Jun. 2023 ) + 210.712 (Dec. 2023 ) = HK$493 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.
AsiaInfo Technologies (HKSE:01675) 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, AsiaInfo Technologies has a Sloan Ratio of -4.43%, indicating the company is in the safe zone and there is no funny business with accruals.
AsiaInfo Technologies Sloan Ratio % Related Terms
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AsiaInfo Technologies (HKSE:01675) Business Description
AsiaInfo Technologies Ltd is a provider of telecom software products and related service. The company's product portfolio currently consists of CRM, charging & billing, and big data products to IoT and intelligent network products. Its software products are deployed using an on-premises, project-based delivery model, and are accompanied by end-to-end, professional deployment services. It operates in two segments: Software business segment that comprises software products and related services; data-driven operation services; and others, including sale of third-party hardware and software, system integration services, business consulting services and corporate trainings. The Network security business segment engages in the provision of network security-related software products and services.
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