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.
Ausnutria Dairy's Sloan Ratio for the quarter that ended in Jun. 2024 was -1.81%.
As of Jun. 2024, Ausnutria Dairy has a Sloan Ratio of -1.81%, indicating the company is in the safe zone and there is no funny business with accruals.
Ausnutria Dairy Sloan Ratio % Historical Data
The historical data trend for Ausnutria Dairy'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 Ausnutria Dairy's Sloan Ratio %
For the Packaged Foods subindustry, Ausnutria Dairy'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.
Ausnutria Dairy's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Ausnutria Dairy's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Ausnutria Dairy's Sloan Ratio % falls into.
Ausnutria Dairy 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.
Ausnutria Dairy'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.
Ausnutria Dairy's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was -11.171 (Dec. 2023 ) + 156.521 (Jun. 2024 ) = HK$145 Mil.
Ausnutria Dairy's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was 675.056 (Dec. 2023 ) + 222.764 (Jun. 2024 ) = HK$898 Mil.
Ausnutria Dairy's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was -415.891 (Dec. 2023 ) + -138.555 (Jun. 2024 ) = HK$-554 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.
Ausnutria Dairy (HKSE:01717) 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 Jun. 2024, Ausnutria Dairy has a Sloan Ratio of -1.81%, indicating the company is in the safe zone and there is no funny business with accruals.
Ausnutria Dairy Sloan Ratio % Related Terms
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Ausnutria Dairy Corp Ltd is active in the dairy industry. Its business activities include research and development, milk collection, processing, production, packaging, marketing, and sales of dairy products. It operates through Dairy and related products and Nutrition product segments. It generates maximum revenue from the Dairy and related products segment: which comprises the manufacturing and sale of dairy and related products, particularly formula milk powder products, to its customers; and the Nutrition products segment: which comprises the manufacturing and sale of nutrition products. Geographically, it derives a majority of its revenue from the PRC and also has a presence in the European Union; the Middle East; North and South America; Australia; New Zealand, and other countries.
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