What is ZhongAn Online P&C Insurance Co Sloan Ratio %?
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.
* 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.
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ZhongAn Online P&C Insurance Co Sloan Ratio % Chart
Competitive Comparison of ZhongAn Online P&C Insurance Co's Sloan Ratio %
For the Insurance - Property & Casualty subindustry, ZhongAn Online P&C Insurance 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.
ZhongAn Online P&C Insurance Co's Sloan Ratio % Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, ZhongAn Online P&C Insurance Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where ZhongAn Online P&C Insurance Co's Sloan Ratio % falls into.
ZhongAn Online P&C Insurance 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.
ZhongAn Online P&C Insurance Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 242.241 (Jun. 2023 ) + 4218.031 (Dec. 2023 ) = HK$4,460 Mil.
ZhongAn Online P&C Insurance Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 1505.322 (Jun. 2023 ) + 909.982 (Dec. 2023 ) = HK$2,415 Mil.
ZhongAn Online P&C Insurance Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -676.772 (Jun. 2023 ) + -5150.122 (Dec. 2023 ) = HK$-5,827 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.
ZhongAn Online P&C Insurance Co (HKSE:06060) 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, ZhongAn Online P&C Insurance Co has a Sloan Ratio of 16.79%, indicating there is a warning stage of accrual build up.
ZhongAn Online P&C Insurance Co Sloan Ratio % Related Terms
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ZhongAn Online P&C Insurance Co (HKSE:06060) Business Description
ZhongAn was founded by Ant Financial, Tencent, Ping An Insurance, and other well-known enterprises in 2013 and is headquartered in Shanghai. The company is the first internet-based insurance company in China. It provides online underwriting and claim services through the internet without any offline branches. ZhongAn was listed in September 2017 in Hong Kong. Besides the online insurance segment, the company operates technology and banking segments. Its insurance technology segment exports digital operating system, middle platforms, and industry models to licensed financial players both domestically and overseas. Its banking segment, through Hong Kong-based virtual bank ZA Bank, offers similar services as traditional offline banks but without an offline presence.
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