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.
Midea Group Co's Sloan Ratio for the quarter that ended in Mar. 2025 was 13.58%.
As of Mar. 2025, Midea Group Co has a Sloan Ratio of 13.58%, indicating there is a warning stage of accrual build up.
Midea Group Co Sloan Ratio % Historical Data
The historical data trend for Midea Group 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 Midea Group Co's Sloan Ratio %
For the Furnishings, Fixtures & Appliances subindustry, Midea Group 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.
Midea Group Co's Sloan Ratio % Distribution in the Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Midea Group Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Midea Group Co's Sloan Ratio % falls into.
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.
Midea Group Co's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
Midea Group Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2025 was 11804.169 (Jun. 2024 ) + 10894.938 (Sep. 2024 ) + 6838.123 (Dec. 2024 ) + 12422.233 (Mar. 2025 ) = ¥41,959 Mil.
Midea Group Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2025 was 19559.262 (Jun. 2024 ) + 26775.511 (Sep. 2024 ) + 247.891 (Dec. 2024 ) + 14320.968 (Mar. 2025 ) = ¥60,904 Mil.
Midea Group Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2025 was -14680.683 (Jun. 2024 ) + -69928.934 (Sep. 2024 ) + 2662.686 (Dec. 2024 ) + -23216.673 (Mar. 2025 ) = ¥-105,164 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.
Midea Group Co (SZSE:000333) 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. 2025, Midea Group Co has a Sloan Ratio of 13.58%, indicating there is a warning stage of accrual build up.
Midea Group Co Sloan Ratio % Related Terms
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Midea Group Co., Ltd. is one of the largest household appliance manufacturers in China, with key products such as air conditioners, refrigerators, washing machines and small household appliances. It is consistently ranked as one of the top three players in China by retail sales in most home appliance categories. The firm also engages in industrial automation and robotics systems through wholly owned Kuka, a global market leader based in Germany. Heating, ventilation, and air conditioning, or HVAC, products generally contribute the most to Midea's revenue, followed by other consumer appliances, and robotics and automation systems. In addition, Midea generates around 40% of sales outside of China.
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