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.
Competitive Comparison of HomeChoice International's Sloan Ratio %
For the Specialty Retail subindustry, HomeChoice International'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.
HomeChoice International's Sloan Ratio % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, HomeChoice International's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where HomeChoice International's Sloan Ratio % falls into.
HomeChoice International 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.
HomeChoice International's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
HomeChoice International's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was 205 (Jun. 2024 ) + 208 (Dec. 2024 ) = R413 Mil.
HomeChoice International's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was -216 (Jun. 2024 ) + -562 (Dec. 2024 ) = R-778 Mil.
HomeChoice International's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -45 (Jun. 2024 ) + -57 (Dec. 2024 ) = R-102 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.
HomeChoice International (JSE:HIL) 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, HomeChoice International has a Sloan Ratio of 16.85%, indicating there is a warning stage of accrual build up.
HomeChoice International Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of HomeChoice International's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
HomeChoice International PLC is an investment holding company. The company through its subsidiaries operates as a home shopping retailer. The company sells homewares merchandise, personal electronics, and loan products to the middle-income market in Southern Africa. The operating business segments are Weaver Fintech, Retail, Property, and Other. The Retail segment consists of the group's HomeChoice omni-channel retail operations focused on homeware categories. The Weaver Fintech segment consists of payments, personal loans, and insurance products for customers and services to merchants in the Buy Now, Pay Later solutions sold under the PayJustNow (PJN) brand. e group's property company, which owns commercial properties utilized within the group, is included in the Property segment.
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