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, China Ludao Technology Co has a Sloan Ratio of 8.47%, indicating the company is in the safe zone and there is no funny business with accruals.
China Ludao Technology 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 China Ludao Technology Co's Sloan Ratio %
For the Household & Personal Products subindustry, China Ludao Technology 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.
China Ludao Technology Co's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, China Ludao Technology Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where China Ludao Technology Co's Sloan Ratio % falls into.
China Ludao Technology 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.
China Ludao Technology Co'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.
China Ludao Technology Co's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was 14.577 (Dec. 2023 ) + 44.803 (Jun. 2024 ) = HK$59.4 Mil.
China Ludao Technology Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was 75.804 (Dec. 2023 ) + 11.682 (Jun. 2024 ) = HK$87.5 Mil.
China Ludao Technology Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was -109.927 (Dec. 2023 ) + -48.801 (Jun. 2024 ) = HK$-158.7 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.
China Ludao Technology Co (HKSE:02023) 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, China Ludao Technology Co has a Sloan Ratio of 8.47%, indicating the company is in the safe zone and there is no funny business with accruals.
China Ludao Technology Co Sloan Ratio % Related Terms
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China Ludao Technology Co Ltd is principally engaged in the manufacture and sale of aerosol products in the People's Republic of China (the PRC). Its products include household and auto care products, air fresheners, personal care products, and insecticides. The firm offers various products including aerosol air fresheners, aromatherapy air fresheners, sticker cleaners, insecticide sprays, deodorant sprays, liquid soaps, cool sprays, and hair sprays among others. Customers of the company are from Mainland China, the United States of America, Japan, Chile, and other regions. The majority of its revenue is derived from Mainland China.
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