What is Horizon Construction Development 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.
As of Dec. 2024, Horizon Construction Development has a Sloan Ratio of 9.53%, indicating the company is in the safe zone and there is no funny business with accruals.
Horizon Construction Development 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.
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Horizon Construction Development Sloan Ratio % Chart
Competitive Comparison of Horizon Construction Development's Sloan Ratio %
For the Rental & Leasing Services subindustry, Horizon Construction Development'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.
Horizon Construction Development's Sloan Ratio % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Horizon Construction Development's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Horizon Construction Development's Sloan Ratio % falls into.
Horizon Construction Development 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.
Horizon Construction Development's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was 288.759 (Jun. 2024 ) + 670.598 (Dec. 2024 ) = HK$959 Mil.
Horizon Construction Development's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was 1451.734 (Jun. 2024 ) + 3048.742 (Dec. 2024 ) = HK$4,500 Mil.
Horizon Construction Development's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -3346.247 (Jun. 2024 ) + -3903.498 (Dec. 2024 ) = HK$-7,250 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.
Horizon Construction Development (HKSE:09930) 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. 2024, Horizon Construction Development has a Sloan Ratio of 9.53%, indicating the company is in the safe zone and there is no funny business with accruals.
Horizon Construction Development Sloan Ratio % Related Terms
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Horizon Construction Development Business Description
Horizon Construction Development Ltd is an equipment operation service provider. The company's services include a nationwide operation network and one-stop equipment services including engineering construction, equipment leasing, equipment sales, spare parts sales, maintenance and manufacturing, and second-hand disposal. The company has three reportable operating segments, Operating lease services, Engineering and technical services, and Platform and other services. A majority of its revenue is generated from the Operating lease services segment which is engaged in leasing of equipment and materials to customers and generating revenue mainly from rental fees payable by customers.
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