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.
Jiugui Liquor Co's Sloan Ratio for the quarter that ended in Mar. 2024 was 18.50%.
As of Mar. 2024, Jiugui Liquor Co has a Sloan Ratio of 18.50%, indicating there is a warning stage of accrual build up.
Jiugui Liquor Co Sloan Ratio % Historical Data
The historical data trend for Jiugui Liquor 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 Jiugui Liquor Co's Sloan Ratio %
For the Beverages - Wineries & Distilleries subindustry, Jiugui Liquor 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.
Jiugui Liquor Co's Sloan Ratio % Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Jiugui Liquor Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Jiugui Liquor Co's Sloan Ratio % falls into.
Jiugui Liquor 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.
Jiugui Liquor Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Jiugui Liquor Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 121.758 (Jun. 2023 ) + 56.772 (Sep. 2023 ) + 69.095 (Dec. 2023 ) + 73.38 (Mar. 2024 ) = ¥321 Mil.
Jiugui Liquor Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -82.516 (Jun. 2023 ) + -25.757 (Sep. 2023 ) + -6.138 (Dec. 2023 ) + -264.752 (Mar. 2024 ) = ¥-379 Mil.
Jiugui Liquor Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -50.505 (Jun. 2023 ) + -70.966 (Sep. 2023 ) + -116.54 (Dec. 2023 ) + -90.296 (Mar. 2024 ) = ¥-328 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.
Jiugui Liquor Co (SZSE:000799) 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, Jiugui Liquor Co has a Sloan Ratio of 18.50%, indicating there is a warning stage of accrual build up.
Jiugui Liquor Co Sloan Ratio % Related Terms
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Jiugui Liquor Co (SZSE:000799) Business Description
Located in western Hunan province, Jiugui Liquor is a typical "Fuyu" flavor baijiu that is characterized with its special culture in both brewing technique and product packaging. The company's product portfolio ranges from low to subpremium segments, with the key products Neican, Jiugui, and Xiangquan respectively contributing 29%, 56% and 15% of total sales revenue in 2022. China National Cereals, Oils and Foodstuffs Corporation, commonly known as Cofco, is the controlling shareholder, with a 15.5% equity stake as of December 2022.
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