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Zhejiang Extek Technology Co (SZSE:301399) Sloan Ratio % : 10.61% (As of Sep. 2024)


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What is Zhejiang Extek 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.

Zhejiang Extek Technology Co's Sloan Ratio for the quarter that ended in Sep. 2024 was 10.61%.

As of Sep. 2024, Zhejiang Extek Technology Co has a Sloan Ratio of 10.61%, indicating there is a warning stage of accrual build up.


Zhejiang Extek Technology Co Sloan Ratio % Historical Data

The historical data trend for Zhejiang Extek Technology 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.

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Zhejiang Extek Technology Co Sloan Ratio % Chart

Zhejiang Extek Technology Co Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Sloan Ratio %
Get a 7-Day Free Trial -6.87 7.69 23.40 15.08 12.26

Zhejiang Extek Technology Co Quarterly Data
Dec18 Dec19 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.81 12.26 8.44 24.39 10.61

Competitive Comparison of Zhejiang Extek Technology Co's Sloan Ratio %

For the Specialty Industrial Machinery subindustry, Zhejiang Extek 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.


Zhejiang Extek Technology Co's Sloan Ratio % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Zhejiang Extek Technology Co's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Zhejiang Extek Technology Co's Sloan Ratio % falls into.



Zhejiang Extek 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.

Zhejiang Extek Technology Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2023 )-Cash Flow from Operations (A: Dec. 2023 )
-Cash Flow from Investing (A: Dec. 2023 ))/Total Assets (A: Dec. 2023 )
=(101.165-127.956
--201.571)/1425.794
=12.26%

Zhejiang Extek Technology Co's Sloan Ratio for the quarter that ended in Sep. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Sep. 2024 )
=(70.047-40.593
--127.541)/1479.719
=10.61%

Zhejiang Extek Technology Co's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 27.907 (Dec. 2023 ) + 10.586 (Mar. 2024 ) + 17.732 (Jun. 2024 ) + 13.822 (Sep. 2024 ) = ¥70.0 Mil.
Zhejiang Extek Technology Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 4.027 (Dec. 2023 ) + -25.225 (Mar. 2024 ) + 38.528 (Jun. 2024 ) + 23.263 (Sep. 2024 ) = ¥40.6 Mil.
Zhejiang Extek Technology Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -18.348 (Dec. 2023 ) + 29.442 (Mar. 2024 ) + -236.451 (Jun. 2024 ) + 97.816 (Sep. 2024 ) = ¥-127.5 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.


Zhejiang Extek Technology Co  (SZSE:301399) 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.

According to How to Beat the Market with the Sloan Ratio:

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, Zhejiang Extek Technology Co has a Sloan Ratio of 10.61%, indicating there is a warning stage of accrual build up.


Zhejiang Extek Technology Co Sloan Ratio % Related Terms

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Zhejiang Extek Technology Co Business Description

Traded in Other Exchanges
N/A
Address
No. 468, Lesan Road, Dipu Street, Anji County, Zhejiang Province, Huzhou, CHN, 313300
Zhejiang Extek Technology Co Ltd is a high-tech enterprise specializing in the research, development, production and sales of high-efficiency heat exchangers. Its products mainly include high-efficiency new shell-and-tube heat exchangers, and coaxial casing heat Products such as heat exchangers and distributors, as the core components of heat pumps and air conditioners, are widely used in heating, hot water, refrigeration, industrial and agricultural production and other fields.

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