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 Sep. 2023, Expert Systems Holdings has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Expert Systems Holdings 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 Expert Systems Holdings's Sloan Ratio %
For the Information Technology Services subindustry, Expert Systems 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.
Expert Systems Holdings's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, Expert Systems Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Expert Systems Holdings's Sloan Ratio % falls into.
Expert Systems 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.
Expert Systems Holdings's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
Expert Systems Holdings's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was 5.386 (Dec. 2022 ) + 3.114 (Mar. 2023 ) + 3.512 (Jun. 2023 ) + 4.39 (Sep. 2023 ) = HK$16.4 Mil.
Expert Systems Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was 0 (Dec. 2022 ) + 0 (Mar. 2023 ) + 0 (Jun. 2023 ) + 0 (Sep. 2023 ) = HK$0.0 Mil.
Expert Systems Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was 0 (Dec. 2022 ) + 0 (Mar. 2023 ) + 0 (Jun. 2023 ) + 0 (Sep. 2023 ) = HK$0.0 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.
Expert Systems Holdings (HKSE:08319) 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. 2023, Expert Systems Holdings has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Expert Systems Holdings Sloan Ratio % Related Terms
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Expert Systems Holdings (HKSE:08319) Business Description
Expert Systems Holdings Ltd is an investment holding company. Along with its subsidiaries, the company is principally engaged in the provision of IT infrastructure solutions .The operating segments of the Company are the provision of IT infrastructure solutions, the provision of IT infrastructure management services and the provision of AI business. Its products and solutions comprise server and storage consolidation, backup and restore, desktop management, networking, infrastructure and management, and information security. The company serves a diverse range of markets including banking, finance, insurance, telecommunications, media, Hotel and government sector. The company's operations are carried out in Hong Kong and Macau. Hong Kong contributes to the vast majority of total revenue.
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