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.
Bojun Education Co's Sloan Ratio for the quarter that ended in Feb. 2024 was -2.33%.
As of Feb. 2024, Bojun Education Co has a Sloan Ratio of -2.33%, indicating the company is in the safe zone and there is no funny business with accruals.
Bojun Education Co Sloan Ratio % Historical Data
The historical data trend for Bojun Education Co'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 Bojun Education Co's Sloan Ratio %
For the Education & Training Services subindustry, Bojun Education Co'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.
Bojun Education Co's Sloan Ratio % Distribution in the Education Industry
For the Education industry and Consumer Defensive sector, Bojun Education Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Bojun Education Co's Sloan Ratio % falls into.
Bojun Education Co 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.
Bojun Education Co's Sloan Ratio for the fiscal year that ended in Aug. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Bojun Education Co's Net Income for the trailing twelve months (TTM) ended in Feb. 2024 was 63.499 (Aug. 2023 ) + 6.344 (Feb. 2024 ) = HK$69.8 Mil.
Bojun Education Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2024 was 21.552 (Aug. 2023 ) + -79.568 (Feb. 2024 ) = HK$-58.0 Mil.
Bojun Education Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Feb. 2024 was 378.207 (Aug. 2023 ) + -149.663 (Feb. 2024 ) = HK$228.5 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.
Bojun Education Co (HKSE:01758) 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 Feb. 2024, Bojun Education Co has a Sloan Ratio of -2.33%, indicating the company is in the safe zone and there is no funny business with accruals.
Bojun Education Co Sloan Ratio % Related Terms
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Bojun Education Co (HKSE:01758) Business Description
Bojun Education Co Ltd is engaged in providing private education services. The company operates middle schools, high schools, and kindergartens. Its operating segment includes the provision of high school and for-profit education services; and the provision of education consultancy and management services. The company generates maximum revenue from the education consultancy and management services segment. Geographically, it derives the majority of its revenue from the People's Republic of China.
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