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.
CSBC Taiwan's Sloan Ratio for the quarter that ended in Sep. 2024 was -8.48%.
Warning Sign:
When sloan ratio (-29.13)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Sep. 2024, CSBC Taiwan has a Sloan Ratio of -8.48%, indicating the company is in the safe zone and there is no funny business with accruals.
CSBC Taiwan Sloan Ratio % Historical Data
The historical data trend for CSBC Taiwan'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.
Competitive Comparison of CSBC Taiwan's Sloan Ratio %
For the Aerospace & Defense subindustry, CSBC Taiwan'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.
CSBC Taiwan's Sloan Ratio % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, CSBC Taiwan's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where CSBC Taiwan's Sloan Ratio % falls into.
CSBC Taiwan 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.
CSBC Taiwan's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
CSBC Taiwan's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was -427.625 (Dec. 2023 ) + -341.802 (Mar. 2024 ) + -223.997 (Jun. 2024 ) + -695.589 (Sep. 2024 ) = NT$-1,689 Mil.
CSBC Taiwan's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 5718.219 (Dec. 2023 ) + -1492.129 (Mar. 2024 ) + -991.285 (Jun. 2024 ) + -1005.761 (Sep. 2024 ) = NT$2,229 Mil.
CSBC Taiwan's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -564.301 (Dec. 2023 ) + -176.696 (Mar. 2024 ) + -230.504 (Jun. 2024 ) + -0.372 (Sep. 2024 ) = NT$-972 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.
CSBC Taiwan (TPE:2208) 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, CSBC Taiwan has a Sloan Ratio of -8.48%, indicating the company is in the safe zone and there is no funny business with accruals.
CSBC Taiwan Sloan Ratio % Related Terms
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CSBC Corp Taiwan is a shipbuilding company. The company organizes itself into three segments that includes construction of ships and vessels, Ship vessel repairs and all other segments. Construction of ships and vessels, which contributes to the vast majority of revenue, manufactures and repairs marine vessels, oil drilling rigs, and onshore equipment. All other segments principally include engineering machinery. The reportable operating segments derive their revenue primarily from the construction and repairing of ships and vessels. The company is headquartered in Taiwan, but generates the portion of revenue in Taiwan, followed by domestic operations.
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