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.
* 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 Ankai Automobile Co's Sloan Ratio %
For the Auto Manufacturers subindustry, Anhui Ankai Automobile 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 Ankai Automobile Co's Sloan Ratio % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Anhui Ankai Automobile Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Anhui Ankai Automobile Co's Sloan Ratio % falls into.
Anhui Ankai Automobile 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 Ankai Automobile Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Anhui Ankai Automobile Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -35.222 (Jun. 2023 ) + 9.843 (Sep. 2023 ) + -113.569 (Dec. 2023 ) + 4.853 (Mar. 2024 ) = ¥-134 Mil.
Anhui Ankai Automobile Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 229.451 (Jun. 2023 ) + 181.28 (Sep. 2023 ) + 153.694 (Dec. 2023 ) + -158.358 (Mar. 2024 ) = ¥406 Mil.
Anhui Ankai Automobile Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -2.445 (Jun. 2023 ) + -4.489 (Sep. 2023 ) + -7.842 (Dec. 2023 ) + -2.432 (Mar. 2024 ) = ¥-17 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 Ankai Automobile Co (SZSE:000868) 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 Ankai Automobile Co has a Sloan Ratio of -16.18%, indicating there is a warning stage of accrual build up.
Anhui Ankai Automobile Co Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Anhui Ankai Automobile Co's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Anhui Ankai Automobile Co (SZSE:000868) Business Description
Anhui Ankai Automobile Co Ltd is a China-based company operates in the business of busses. It manufactures and sells large, medium, and light buses and their automotive parts. It offers Coach, City bus, School bus and New energy bus. Geographically the business activities are carried out through China and its products are exported to developed countries and regions, including U.S., UK, Australia, Dubai, Hong Kong, and Macau.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
SZSE:000868 has been successfully added to your 