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 Sep. 2024, Xinlong Holding (Group) Co has a Sloan Ratio of -7.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Xinlong Holding (Group) 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 Xinlong Holding (Group) Co's Sloan Ratio %
For the Textile Manufacturing subindustry, Xinlong Holding (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.
Xinlong Holding (Group) Co's Sloan Ratio % Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Xinlong Holding (Group) Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Xinlong Holding (Group) Co's Sloan Ratio % falls into.
Xinlong Holding (Group) 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.
Xinlong Holding (Group) Co's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was -17.233 (Dec. 2023 ) + -7.121 (Mar. 2024 ) + -5.251 (Jun. 2024 ) + -1.494 (Sep. 2024 ) = ¥-31.1 Mil.
Xinlong Holding (Group) Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 34.546 (Dec. 2023 ) + -42.345 (Mar. 2024 ) + 19.527 (Jun. 2024 ) + 25.627 (Sep. 2024 ) = ¥37.4 Mil.
Xinlong Holding (Group) Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was 43.609 (Dec. 2023 ) + -12.617 (Mar. 2024 ) + -5.558 (Jun. 2024 ) + -24.92 (Sep. 2024 ) = ¥0.5 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.
Xinlong Holding (Group) Co (SZSE:000955) 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. 2024, Xinlong Holding (Group) Co has a Sloan Ratio of -7.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Xinlong Holding (Group) Co Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Xinlong Holding (Group) Co's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Xinlong Holding (Group) Co Ltd is engaged in the production and distribution of non-woven materials in China. The company produces breathable, waterproof, fire retardant, anti-UV, high-strength and high-quality thin PET spunbond nonwovens and other meltspun new material. The products can be widely used in various fields such as agriculture and national defense. It is also engaged in the phosphorus chemical industry. The non-woven products are made available in both Chinese and other international markets such as Europe, North America, India and Southeast Asia and other countries.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
SZSE:000955 has been successfully added to your 