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.
China Glass Holdings's Sloan Ratio for the quarter that ended in Dec. 2023 was -0.42%.
As of Dec. 2023, China Glass Holdings has a Sloan Ratio of -0.42%, indicating the company is in the safe zone and there is no funny business with accruals.
China Glass Holdings Sloan Ratio % Historical Data
The historical data trend for China Glass 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 China Glass Holdings's Sloan Ratio %
For the Building Materials subindustry, China Glass 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.
China Glass Holdings's Sloan Ratio % Distribution in the Building Materials Industry
For the Building Materials industry and Basic Materials sector, China Glass Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where China Glass Holdings's Sloan Ratio % falls into.
China Glass Holdings 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 Glass 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.
China Glass Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -112.961 (Jun. 2023 ) + -335.221 (Dec. 2023 ) = HK$-448 Mil.
China Glass Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 25.15 (Jun. 2023 ) + 583.413 (Dec. 2023 ) = HK$609 Mil.
China Glass Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -738.775 (Jun. 2023 ) + -249.342 (Dec. 2023 ) = HK$-988 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 Glass Holdings (HKSE:03300) 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 Dec. 2023, China Glass Holdings has a Sloan Ratio of -0.42%, indicating the company is in the safe zone and there is no funny business with accruals.
China Glass Holdings Sloan Ratio % Related Terms
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China Glass Holdings (HKSE:03300) Business Description
China Glass Holdings Ltd is engaged in the production, marketing, and distribution of float glass, reflective glass, and other glass products. It has five business segments, Clear glass products; Painted glass products; Coated glass products; Energy saving and new energy glass products, such as ultra clear glass, low emission coated glass and photovoltaic battery module products; and Designing and installation services of pharmaceutical glass production lines. Geographically, the company has operations in Mainland China, Hong Kong, the Middle East, Nigeria, Italy, Kazakhstan and other countries. It generates a majority of its revenues from the Clear glass products segment.
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