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.
Sinohealth Holdings's Sloan Ratio for the quarter that ended in Jun. 2024 was 17.78%.
Warning Sign:
When sloan ratio (32.24)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Jun. 2024, Sinohealth Holdings has a Sloan Ratio of 17.78%, indicating earnings are more likely to be made up of accruals.
Sinohealth Holdings Sloan Ratio % Historical Data
The historical data trend for Sinohealth 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 Sinohealth Holdings's Sloan Ratio %
For the Health Information Services subindustry, Sinohealth 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.
Sinohealth Holdings's Sloan Ratio % Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Sinohealth Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sinohealth 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.
Sinohealth Holdings'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.
Sinohealth Holdings's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was 59.282 (Dec. 2023 ) + 44.865 (Jun. 2024 ) = HK$104.1 Mil.
Sinohealth Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was 34.562 (Dec. 2023 ) + 21.058 (Jun. 2024 ) = HK$55.6 Mil.
Sinohealth Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was 24.037 (Dec. 2023 ) + -130.976 (Jun. 2024 ) = HK$-106.9 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.
Sinohealth Holdings (HKSE:02361) 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, Sinohealth Holdings has a Sloan Ratio of 17.78%, indicating earnings are more likely to be made up of accruals.
Sinohealth Holdings Sloan Ratio % Related Terms
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Sinohealth is a leading provider of Big Data and artificial intelligence-based marketing and distribution information tools, including SaaS-based customer relationship management solutions to mainland China medical product manufacturers. It sources retail data through pharmacy partnerships and provides data analysis to the pharmaceutical and corporate clients it serves. Since its establishment in 2007, its focus has been on building a strong Big Data engine and networking capabilities to assist clients in their product investments and sales and marketing strategies. It is now launching various cloud-based systems and platform solutions for its clients and expanding its SaaS products, which are expected to be the key growth driver in future.
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