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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 Mar. 2026, New China Life Insurance Co has a Sloan Ratio of -1.53%, indicating the company is in the safe zone and there is no funny business with accruals.
New China Life Insurance Co (OTCPK:NWWCF) 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 Mar. 2026, New China Life Insurance Co has a Sloan Ratio of -1.53%, indicating the company is in the safe zone and there is no funny business with accruals.
New China Life Insurance Co Sloan Ratio % Related Terms
New China Life Insurance Co 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.
For the Insurance - Life subindustry, New China Life 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.
New China Life Insurance Co Sloan Ratio % vs Insurance Industry
For the Insurance industry and Financial Services sector, New China Life Insurance Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where New China Life Insurance Co's Sloan Ratio % falls into.
New China Life 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.
New China Life Insurance Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 1241.853 (Jun. 2025 ) + 2534.99 (Sep. 2025 ) + 486.569 (Dec. 2025 ) + 943.254 (Mar. 2026 ) = $5,207 Mil.
New China Life Insurance Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 3499.944 (Jun. 2025 ) + 4415.666 (Sep. 2025 ) + 2944.968 (Dec. 2025 ) + 5268.496 (Mar. 2026 ) = $16,129 Mil.
New China Life Insurance Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was 493.148 (Jun. 2025 ) + -5076.437 (Sep. 2025 ) + -7415.521 (Dec. 2025 ) + 5204.219 (Mar. 2026 ) = $-6,795 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.
New China Life Insurance Co (NWWCF) has a Sloan Ratio % of -1.53% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on New China Life Insurance Co and its competitors.
Is New China Life Insurance Co's Sloan Ratio % too high?
New China Life Insurance Co's current Sloan Ratio % is -1.53%. Overall, New China Life Insurance Co has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does New China Life Insurance Co's Sloan Ratio % compare to AFL and MET?
New China Life Insurance Co's Sloan Ratio % of -1.53% can be compared against companies in the Insurance industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for an Insurance company?
A good Sloan Ratio % depends on the Insurance industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on New China Life Insurance Co and its competitors. New China Life Insurance Co's current Sloan Ratio % is -1.53%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New China Life Insurance Co stock overvalued right now?
Based on GuruFocus' analysis, New China Life Insurance Co (NWWCF) is currently considered Modestly Overvalued. The stock's GF Value™ is $4.47, compared to a current price of $5.82 — trading 30.2% above its estimated fair value. The current Sloan Ratio % is -1.53%. New China Life Insurance Co's overall GF Score™ is 68/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For New China Life Insurance Co (NWWCF), the current Sloan Ratio % is -1.53% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is New China Life Insurance Co (NWWCF) Overvalued in 2026?
Based on GuruFocus' analysis, New China Life Insurance Co stock appears to be overvalued.
The current stock price of $5.82 is trading 30.2% above its estimated GF Value™ of $4.47.
GuruFocus considers New China Life Insurance Co to be Modestly Overvalued.
Key valuation signals for NWWCF:
Sloan Ratio %: -1.53%
GF Value™: $4.47 vs. price of $5.82 (30.2% above fair value)
No single metric tells the full story. See the NWWCF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
New China Life Insurance Co Ltd is headquartered in Beijing and was established in 1996 by a combination of state-owned enterprises and private firms. It is currently the fourth-largest life insurer in China based on total assets. New China Life offers a wide range of life insurance products and services to both individual and institutional customers through its extensive distribution networks and diverse marketing channels. Additionally, it manages and invests insurance funds through its subsidiaries, including its Asset Management Company and Asset Management Company (Hong Kong).
68GF Score
Get the complete analysis for NWWCF
Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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