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.
Texwinca Holdings's Sloan Ratio for the quarter that ended in Sep. 2023 was -16.08%.
Warning Sign:
When sloan ratio (-26.97)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Sep. 2023, Texwinca Holdings has a Sloan Ratio of -16.08%, indicating earnings are more likely to be made up of accruals.
Texwinca Holdings Sloan Ratio % Historical Data
The historical data trend for Texwinca Holdings'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 Texwinca Holdings's Sloan Ratio %
For the Textile Manufacturing subindustry, Texwinca Holdings'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.
Texwinca Holdings's Sloan Ratio % Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Texwinca Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Texwinca Holdings's Sloan Ratio % falls into.
Texwinca Holdings 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.
Texwinca Holdings's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Texwinca Holdings's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was -4.506 (Mar. 2023 ) + 5.23 (Sep. 2023 ) = €0.7 Mil.
Texwinca Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was 91.787 (Mar. 2023 ) + 22.273 (Sep. 2023 ) = €114.1 Mil.
Texwinca Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was 68.748 (Mar. 2023 ) + -48.825 (Sep. 2023 ) = €19.9 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.
Texwinca Holdings (STU:TXW) 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 Sep. 2023, Texwinca Holdings has a Sloan Ratio of -16.08%, indicating earnings are more likely to be made up of accruals.
Texwinca Holdings Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Texwinca Holdings's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Texwinca Holdings Ltd is a Hong Kong-based company. The company is principally engaged in the textile business, which refers to production, dyeing, and sale of knitted fabric and yarn garments, and the retail & distribution of casual apparel and accessories business, which means retailing and distribution of casual apparel and accessories. The textile business and the retail and distribution business jointly account for majority of the company's total revenue. The company is also involved in providing repair and maintenance services for motor vehicles, offering franchise services, and others. The company generates its revenue from Mainland China, the United States, Japan, Hong Kong, and other areas, with Mainland China being the largest revenue contributor.
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