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 Sep. 2024, Chin Well Holdings Bhd has a Sloan Ratio of 3.52%, indicating the company is in the safe zone and there is no funny business with accruals.
Chin Well Holdings Bhd 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 Chin Well Holdings Bhd's Sloan Ratio %
For the Tools & Accessories subindustry, Chin Well Holdings Bhd'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.
Chin Well Holdings Bhd's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Chin Well Holdings Bhd's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Chin Well Holdings Bhd's Sloan Ratio % falls into.
Chin Well Holdings Bhd 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.
Chin Well Holdings Bhd's Sloan Ratio for the fiscal year that ended in Jun. 2024 is calculated as
Chin Well Holdings Bhd's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 0.254 (Dec. 2023 ) + 2.521 (Mar. 2024 ) + 3.297 (Jun. 2024 ) + -4.618 (Sep. 2024 ) = RM1.5 Mil.
Chin Well Holdings Bhd's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 20.178 (Dec. 2023 ) + -23.036 (Mar. 2024 ) + -12.598 (Jun. 2024 ) + 18.009 (Sep. 2024 ) = RM2.6 Mil.
Chin Well Holdings Bhd's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -33.829 (Dec. 2023 ) + -1.035 (Mar. 2024 ) + 21.96 (Jun. 2024 ) + -13.288 (Sep. 2024 ) = RM-26.2 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.
Chin Well Holdings Bhd (XKLS:5007) 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, Chin Well Holdings Bhd has a Sloan Ratio of 3.52%, indicating the company is in the safe zone and there is no funny business with accruals.
Chin Well Holdings Bhd Sloan Ratio % Related Terms
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Chin Well Holdings Bhd is a Malaysia-based investment holding company. It operates in three business segments. The Fastening products segment is a key revenue driver which is engaged in the manufacturing and trading of screws, nuts, bolts, and other related products. Its Wire products segment is involved in the production of precision galvanized wire, annealing wire, bright wire, hard drawn wire, polyvinyl chloride wire, bent round bar, and grill mesh. The Investment holding segment comprises investment holding and property investment activities. Geographically, it operates in Malaysia, Europe, North America, Vietnam, Australia, Other Asia Pacific countries and others. It derives a majority of its revenue from Europe.
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