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.
Taiwan Kong King Co's Sloan Ratio for the quarter that ended in Mar. 2024 was 7.46%.
As of Mar. 2024, Taiwan Kong King Co has a Sloan Ratio of 7.46%, indicating the company is in the safe zone and there is no funny business with accruals.
Taiwan Kong King Co Sloan Ratio % Historical Data
The historical data trend for Taiwan Kong King Co'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 Taiwan Kong King Co's Sloan Ratio %
For the Electronic Components subindustry, Taiwan Kong King 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.
Taiwan Kong King Co's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Taiwan Kong King Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Taiwan Kong King Co's Sloan Ratio % falls into.
Taiwan Kong King 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.
Taiwan Kong King Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Taiwan Kong King Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 98.851 (Jun. 2023 ) + 69.495 (Sep. 2023 ) + 65.72 (Dec. 2023 ) + 23.012 (Mar. 2024 ) = NT$257 Mil.
Taiwan Kong King Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 17.443 (Jun. 2023 ) + 123.621 (Sep. 2023 ) + 97.546 (Dec. 2023 ) + -99.93 (Mar. 2024 ) = NT$139 Mil.
Taiwan Kong King Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -1.281 (Jun. 2023 ) + 3.161 (Sep. 2023 ) + 2.655 (Dec. 2023 ) + 0.44 (Mar. 2024 ) = NT$5 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.
Taiwan Kong King Co (ROCO:3093) 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. 2024, Taiwan Kong King Co has a Sloan Ratio of 7.46%, indicating the company is in the safe zone and there is no funny business with accruals.
Taiwan Kong King Co Sloan Ratio % Related Terms
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Taiwan Kong King Co (ROCO:3093) Business Description
Taiwan Kong King Co Ltd is an agent for electronics-related manufacturers in Taiwan and China. The company's products include PCB, SMT, semiconductor, solar, LED, optoelectronic communication, and chemical material, and also provides equipment technical services. The company operates in four segments; Customer Service Segment, Electronics Segment, PCB Segment, and Production Segment. PCB segment involves marketing for PCB equipment and materials, market research, business activities, market development plans, and implementation and contributes to the majority of the company's revenue.
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