What is Lien Hwa Industrial Holding 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.
As of Mar. 2024, Lien Hwa Industrial Holding has a Sloan Ratio of 1.39%, indicating the company is in the safe zone and there is no funny business with accruals.
Lien Hwa Industrial Holding 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 Lien Hwa Industrial Holding's Sloan Ratio %
For the Conglomerates subindustry, Lien Hwa Industrial Holding'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.
Lien Hwa Industrial Holding's Sloan Ratio % Distribution in the Conglomerates Industry
For the Conglomerates industry and Industrials sector, Lien Hwa Industrial Holding's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Lien Hwa Industrial Holding's Sloan Ratio % falls into.
Lien Hwa Industrial Holding 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.
Lien Hwa Industrial Holding's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 1089.558 (Mar. 2023 ) + 1222.909 (Jun. 2023 ) + 1070.961 (Sep. 2023 ) + 1099.135 (Mar. 2024 ) = NT$4,483 Mil.
Lien Hwa Industrial Holding's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 730.096 (Mar. 2023 ) + 236.98 (Jun. 2023 ) + 2009.607 (Sep. 2023 ) + 756.736 (Mar. 2024 ) = NT$3,733 Mil.
Lien Hwa Industrial Holding's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -110.423 (Mar. 2023 ) + 50.238 (Jun. 2023 ) + -240.801 (Sep. 2023 ) + -198.401 (Mar. 2024 ) = NT$-499 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.
Lien Hwa Industrial Holding (TPE:1229) 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, Lien Hwa Industrial Holding has a Sloan Ratio of 1.39%, indicating the company is in the safe zone and there is no funny business with accruals.
Lien Hwa Industrial Holding Sloan Ratio % Related Terms
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Lien Hwa Industrial Holding (TPE:1229) Business Description
Lien Hwa Industrial Holding Corp is engaged in flour production and sale, real estate rental, integrated system service, automatic system, and other electronic businesses. The company has five reportable segments. The rental business provides real property rental and development services. The noodle business manufactures and sells all kinds of noodles and processed foods. The noodle business overseas is a noodles manufacturing and sale company. The system integration service business provides the system integration service, automatic system, applied software design, and sale of industrial computers. The administrative resource center is responsible for the management of domestic/foreign investment business.
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