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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, Shandong Xinhua Pharmaceutical Co has a Sloan Ratio of -0.65%, indicating the company is in the safe zone and there is no funny business with accruals.
Shandong Xinhua Pharmaceutical Co (OTCPK:SHNXY) 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, Shandong Xinhua Pharmaceutical Co has a Sloan Ratio of -0.65%, indicating the company is in the safe zone and there is no funny business with accruals.
Shandong Xinhua Pharmaceutical Co Sloan Ratio % Related Terms
Shandong Xinhua Pharmaceutical 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.
Shandong Xinhua Pharmaceutical Co Sloan Ratio % Chart
For the Drug Manufacturers - Specialty & Generic subindustry, Shandong Xinhua Pharmaceutical 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.
Shandong Xinhua Pharmaceutical Co Sloan Ratio % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Shandong Xinhua Pharmaceutical Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Shandong Xinhua Pharmaceutical Co's Sloan Ratio % falls into.
Shandong Xinhua Pharmaceutical 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.
Shandong Xinhua Pharmaceutical Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 15.551 (Jun. 2025 ) + 4.557 (Sep. 2025 ) + 4.78 (Dec. 2025 ) + 12.174 (Mar. 2026 ) = $37 Mil.
Shandong Xinhua Pharmaceutical Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 31.434 (Jun. 2025 ) + 12.335 (Sep. 2025 ) + 30.062 (Dec. 2025 ) + -16.911 (Mar. 2026 ) = $57 Mil.
Shandong Xinhua Pharmaceutical Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -3.58 (Jun. 2025 ) + -2.766 (Sep. 2025 ) + -1.073 (Dec. 2025 ) + -3.857 (Mar. 2026 ) = $-11 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.
Shandong Xinhua Pharmaceutical Co (SHNXY) has a Sloan Ratio % of -0.65% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Shandong Xinhua Pharmaceutical Co and its competitors.
Is Shandong Xinhua Pharmaceutical Co's Sloan Ratio % too high?
Shandong Xinhua Pharmaceutical Co's current Sloan Ratio % is -0.65%. Overall, Shandong Xinhua Pharmaceutical Co has a GF Score™ of 88/100, reflecting its overall financial health beyond just this single metric.
How does Shandong Xinhua Pharmaceutical Co's Sloan Ratio % compare to ZTS?
Shandong Xinhua Pharmaceutical Co's Sloan Ratio % of -0.65% can be compared against companies in the Drug Manufacturers 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 a Drug Manufacturers company?
A good Sloan Ratio % depends on the Drug Manufacturers 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 Shandong Xinhua Pharmaceutical Co and its competitors. Shandong Xinhua Pharmaceutical Co's current Sloan Ratio % is -0.65%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Xinhua Pharmaceutical Co stock overvalued right now?
Shandong Xinhua Pharmaceutical Co (SHNXY) has a current Sloan Ratio % of -0.65%. The stock's GF Value™ is $23.47, compared to a current price of $18.19 — trading 22.5% below its estimated fair value. The current Sloan Ratio % is -0.65%. Shandong Xinhua Pharmaceutical Co's overall GF Score™ is 88/100 with 5 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 Shandong Xinhua Pharmaceutical Co (SHNXY), the current Sloan Ratio % is -0.65% 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 Shandong Xinhua Pharmaceutical Co (SHNXY) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Xinhua Pharmaceutical Co stock appears to be undervalued.
The current stock price of $18.19 is trading 22.5% below its estimated GF Value™ of $23.47.
Key valuation signals for SHNXY:
Sloan Ratio %: -0.65%
GF Value™: $23.47 vs. price of $18.19 (22.5% below fair value)
No single metric tells the full story. See the SHNXY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Xinhua Pharmaceutical Co Ltd is a pharmaceutical products manufacturer based in China. It operates various segments namely Chemical raw materials, Preparations, Pharmaceutical intermediates and other products. The company is mainly engaged in the business of development, manufacture and sale of bulk pharmaceuticals, preparations and chemical products.
88GF Score
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