What is Baowu Magnesium Technology Co Sloan Ratio %?
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 Baowu Magnesium Technology Co's Sloan Ratio %
For the Aluminum subindustry, Baowu Magnesium Technology 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.
Baowu Magnesium Technology Co's Sloan Ratio % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Baowu Magnesium Technology Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Baowu Magnesium Technology Co's Sloan Ratio % falls into.
Baowu Magnesium Technology 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.
Baowu Magnesium Technology Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 70.715 (Jun. 2023 ) + 86.116 (Sep. 2023 ) + 98.991 (Dec. 2023 ) + 60.719 (Mar. 2024 ) = ¥317 Mil.
Baowu Magnesium Technology Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 105.636 (Jun. 2023 ) + -73.751 (Sep. 2023 ) + 129.786 (Dec. 2023 ) + 184.664 (Mar. 2024 ) = ¥346 Mil.
Baowu Magnesium Technology Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -306.197 (Jun. 2023 ) + -960.328 (Sep. 2023 ) + -867.044 (Dec. 2023 ) + -725.382 (Mar. 2024 ) = ¥-2,859 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.
Baowu Magnesium Technology Co (SZSE:002182) 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, Baowu Magnesium Technology Co has a Sloan Ratio of 23.70%, indicating there is a warning stage of accrual build up.
Baowu Magnesium Technology Co Sloan Ratio % Related Terms
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Baowu Magnesium Technology Co (SZSE:002182) Business Description
Baowu Magnesium Technology Co Ltd is a high-tech enterprise integrating mining, non-ferrous metal smelting, processing and recycling. As a global leader in light metal materials, it has a complete chain of research, development and manufacture, and its market shares of major products such as magnesium, aluminum, and strontium lead the way around the world.
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