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.
Wing Fung Group Asia's Sloan Ratio for the quarter that ended in Jun. 2024 was 0.00%.
Warning Sign:
When sloan ratio (-33.21)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Jun. 2024, Wing Fung Group Asia has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Wing Fung Group Asia Sloan Ratio % Historical Data
The historical data trend for Wing Fung Group Asia'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 Wing Fung Group Asia's Sloan Ratio %
For the Building Products & Equipment subindustry, Wing Fung Group Asia'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.
Wing Fung Group Asia's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Wing Fung Group Asia's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Wing Fung Group Asia's Sloan Ratio % falls into.
Wing Fung Group Asia 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.
Wing Fung Group Asia's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Wing Fung Group Asia's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was 0.414 (Jun. 2023 ) + -3.082 (Sep. 2023 ) + -31.512 (Dec. 2023 ) + 0 (Jun. 2024 ) = HK$-34.2 Mil.
Wing Fung Group Asia's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) + 0 (Jun. 2024 ) = HK$0.0 Mil.
Wing Fung Group Asia's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) + 0 (Jun. 2024 ) = 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.
Wing Fung Group Asia (HKSE:08526) 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, Wing Fung Group Asia has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Wing Fung Group Asia Sloan Ratio % Related Terms
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Wing Fung Group Asia Ltd is an investment holding company principally engaged in the provision of supply, installation, and fitting-out services of MVAC (mechanical ventilation and air-conditioning) systems for buildings. The Company's customers principally consist of main contractors and subcontractors of building projects. The building projects principally consist of infrastructural, commercial, and residential building projects, including offices, hotels, hospitals, data centers, shopping malls, and educational and training institutions. It receives maximum revenue from construction contracts. Geographically, the company derives the majority of its revenue from Hong Kong.
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