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.
New Concepts Holdings's Sloan Ratio for the quarter that ended in Sep. 2024 was 10.11%.
As of Sep. 2024, New Concepts Holdings has a Sloan Ratio of 10.11%, indicating there is a warning stage of accrual build up.
New Concepts Holdings Sloan Ratio % Historical Data
The historical data trend for New Concepts Holdings'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 New Concepts Holdings's Sloan Ratio %
For the Engineering & Construction subindustry, New Concepts Holdings'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.
New Concepts Holdings's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, New Concepts Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where New Concepts Holdings's Sloan Ratio % falls into.
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.
New Concepts Holdings'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.
New Concepts Holdings's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 9.306 (Mar. 2024 ) + -14.856 (Sep. 2024 ) = HK$-5.6 Mil.
New Concepts Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was -111.835 (Mar. 2024 ) + 14.619 (Sep. 2024 ) = HK$-97.2 Mil.
New Concepts Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -21.241 (Mar. 2024 ) + -8.546 (Sep. 2024 ) = HK$-29.8 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.
New Concepts Holdings (HKSE:02221) 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 Sep. 2024, New Concepts Holdings has a Sloan Ratio of 10.11%, indicating there is a warning stage of accrual build up.
New Concepts Holdings Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of New Concepts Holdings's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
New Concepts Holdings Ltd is an investment holding company, which majorly focuses on foundation works, civil engineering, and general building services, and environmental protection projects, including kitchen waste treatment, environmental park development, and new energy materials in Mainland China. The company's operating segment includes Construction works and Environmental protection services. It generates maximum revenue from the Construction works segment. The Construction work segment is engaged in the provision of foundation works, civil engineering works, and general building works in Hong Kong. Geographically, it derives a majority of its revenue from Hong Kong and also has a presence in Mainland China.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
HKSE:02221 has been successfully added to your 