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.
Most Kwai Chung's Sloan Ratio for the quarter that ended in Mar. 2024 was -3.98%.
As of Mar. 2024, Most Kwai Chung has a Sloan Ratio of -3.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Most Kwai Chung Sloan Ratio % Historical Data
The historical data trend for Most Kwai Chung'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 Most Kwai Chung's Sloan Ratio %
For the Advertising Agencies subindustry, Most Kwai Chung'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.
Most Kwai Chung's Sloan Ratio % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Most Kwai Chung's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Most Kwai Chung's Sloan Ratio % falls into.
Most Kwai Chung 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.
Most Kwai Chung'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.
Most Kwai Chung's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -1.951 (Sep. 2023 ) + -7.264 (Mar. 2024 ) = HK$-9.22 Mil.
Most Kwai Chung's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -3.708 (Sep. 2023 ) + -6.417 (Mar. 2024 ) = HK$-10.13 Mil.
Most Kwai Chung's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 1.828 (Sep. 2023 ) + 1.509 (Mar. 2024 ) = HK$3.34 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.
Most Kwai Chung (HKSE:01716) 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 Mar. 2024, Most Kwai Chung has a Sloan Ratio of -3.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Most Kwai Chung Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Most Kwai Chung's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Most Kwai Chung Ltd is engaged in the provision of digital media services, print media services and other media services which include events organization and artistes management. Its operating segment includes Digital media services, Print media services, and Other media services. Digital media services is engaged in the provision of one-stop advertising solution packages. The Print media services represent advertorial production and advertisement placement services and sale of publications including books and magazines. It generates maximum revenue from the Digital media services segment. Geographically, it operates only in Hong Kong.
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