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. 2024, Anhui Gujing Distillery Co has a Sloan Ratio of 4.42%, indicating the company is in the safe zone and there is no funny business with accruals.
Anhui Gujing Distillery 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.
Competitive Comparison of Anhui Gujing Distillery Co's Sloan Ratio %
For the Beverages - Wineries & Distilleries subindustry, Anhui Gujing Distillery 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.
Anhui Gujing Distillery Co's Sloan Ratio % Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Anhui Gujing Distillery Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Anhui Gujing Distillery Co's Sloan Ratio % falls into.
Anhui Gujing Distillery 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.
Anhui Gujing Distillery Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 1209.77 (Jun. 2023 ) + 1033.161 (Sep. 2023 ) + 776.529 (Dec. 2023 ) + 2065.836 (Mar. 2024 ) = ¥5,085 Mil.
Anhui Gujing Distillery Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 1649.152 (Jun. 2023 ) + 991.789 (Sep. 2023 ) + -1223.42 (Dec. 2023 ) + 2454.021 (Mar. 2024 ) = ¥3,872 Mil.
Anhui Gujing Distillery Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -307.428 (Jun. 2023 ) + 409.533 (Sep. 2023 ) + -687.692 (Dec. 2023 ) + 8.649 (Mar. 2024 ) = ¥-577 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.
Anhui Gujing Distillery Co (SZSE:000596) 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, Anhui Gujing Distillery Co has a Sloan Ratio of 4.42%, indicating the company is in the safe zone and there is no funny business with accruals.
Anhui Gujing Distillery Co Sloan Ratio % Related Terms
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Anhui Gujing Distillery Co (SZSE:000596) Business Description
Anhui Gujing is one of the eight most famous baijiu brands in China and the largest baijiu distiller in Anhui province by sales in 2022. The company produces rich-flavored baijiu, with a colorful brand story tracing back 1,800 years to the Three Kingdoms period. Gujing is one of the leading players in the midrange to high-end market and enjoys high retail prices and profit margins, with its flagship Gujing Year Puree series contributing 70%-75% of total sales. The State-Owned Assets Supervision and Administration Commission of Bozhou controls 28% of Gujing.
Anhui Gujing Distillery Co (SZSE:000596) Headlines
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