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, Zhejiang Founder Motor Co has a Sloan Ratio of 2.42%, indicating the company is in the safe zone and there is no funny business with accruals.
Zhejiang Founder Motor 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 Zhejiang Founder Motor Co's Sloan Ratio %
For the Specialty Industrial Machinery subindustry, Zhejiang Founder Motor 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.
Zhejiang Founder Motor Co's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Zhejiang Founder Motor Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Zhejiang Founder Motor Co's Sloan Ratio % falls into.
Zhejiang Founder Motor 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.
Zhejiang Founder Motor Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Zhejiang Founder Motor Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 18.481 (Jun. 2023 ) + 60.175 (Sep. 2023 ) + 13.248 (Dec. 2023 ) + -8.338 (Mar. 2024 ) = ¥84 Mil.
Zhejiang Founder Motor Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -8.977 (Jun. 2023 ) + -32.052 (Sep. 2023 ) + 4.059 (Dec. 2023 ) + 126.946 (Mar. 2024 ) = ¥90 Mil.
Zhejiang Founder Motor Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -161.115 (Jun. 2023 ) + 127.133 (Sep. 2023 ) + -16.925 (Dec. 2023 ) + -56.464 (Mar. 2024 ) = ¥-107 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.
Zhejiang Founder Motor Co (SZSE:002196) 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, Zhejiang Founder Motor Co has a Sloan Ratio of 2.42%, indicating the company is in the safe zone and there is no funny business with accruals.
Zhejiang Founder Motor Co Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Zhejiang Founder Motor Co's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Zhejiang Founder Motor Co (SZSE:002196) Business Description
Zhejiang Founder Motor Co Ltd is a China-based company engaged in research and development, production and sale of micro special motors. The company is also specialized in energy-saving and new-energy vehicle drivetrains and automotive control systems. Its products include EV motors, automotive motors, energy vehicle motor drives, energy commercial vehicle drive systems, and car controls. The company's products are used in low-speed electric vehicles, light trucks, low-voltage electric vehicles, passenger cars and engineering vehicles.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
SZSE:002196 has been successfully added to your 