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 Jun. 2024, CGN New Energy Holdings Co has a Sloan Ratio of 4.21%, indicating the company is in the safe zone and there is no funny business with accruals.
CGN New Energy Holdings Co 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 CGN New Energy Holdings Co's Sloan Ratio %
For the Utilities - Independent Power Producers subindustry, CGN New Energy Holdings 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.
CGN New Energy Holdings Co's Sloan Ratio % Distribution in the Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, CGN New Energy Holdings Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where CGN New Energy Holdings Co's Sloan Ratio % falls into.
CGN New Energy Holdings 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.
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
CGN New Energy Holdings Co's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was 545.569 (Dec. 2023 ) + 1432.776 (Jun. 2024 ) = HK$1,978 Mil.
CGN New Energy Holdings Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was 2666.57 (Dec. 2023 ) + 2042.44 (Jun. 2024 ) = HK$4,709 Mil.
CGN New Energy Holdings Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was -2897.748 (Dec. 2023 ) + -2598.012 (Jun. 2024 ) = HK$-5,496 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.
CGN New Energy Holdings Co (HKSE:01811) 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, CGN New Energy Holdings Co has a Sloan Ratio of 4.21%, indicating the company is in the safe zone and there is no funny business with accruals.
CGN New Energy Holdings Co Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of CGN New Energy Holdings Co's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
CGN New Energy Holdings Co Ltd together with its subsidiaries is engaged in the generation and supply of electricity and steam, the construction and operation of power stations, and other associated facilities in PRC and Korea. The company has three reportable segments; Power plants in the PRC include the Generation and supply of electricity, Power plants in Korea include the Generation and supply of electricity, and Management companies include the Provision of management services to power plants operated by CGN and its subsidiaries.
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