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.
Hiap Teck Venture Bhd's Sloan Ratio for the quarter that ended in Jan. 2024 was 13.75%.
As of Jan. 2024, Hiap Teck Venture Bhd has a Sloan Ratio of 13.75%, indicating there is a warning stage of accrual build up.
Hiap Teck Venture Bhd Sloan Ratio % Historical Data
The historical data trend for Hiap Teck Venture Bhd'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 Hiap Teck Venture Bhd's Sloan Ratio %
For the Steel subindustry, Hiap Teck Venture 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.
Hiap Teck Venture Bhd's Sloan Ratio % Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Hiap Teck Venture Bhd's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Hiap Teck Venture Bhd's Sloan Ratio % falls into.
Hiap Teck Venture 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.
Hiap Teck Venture Bhd's Sloan Ratio for the fiscal year that ended in Jul. 2023 is calculated as
Hiap Teck Venture Bhd's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was 15.027 (Apr. 2023 ) + 42.603 (Jul. 2023 ) + -9.432 (Oct. 2023 ) + 21.434 (Jan. 2024 ) = RM70 Mil.
Hiap Teck Venture Bhd's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was -82.516 (Apr. 2023 ) + 24.118 (Jul. 2023 ) + -46.783 (Oct. 2023 ) + -11.119 (Jan. 2024 ) = RM-116 Mil.
Hiap Teck Venture Bhd's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -2.389 (Apr. 2023 ) + -13.335 (Jul. 2023 ) + -21.832 (Oct. 2023 ) + -49.9 (Jan. 2024 ) = RM-87 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.
Hiap Teck Venture Bhd (XKLS:5072) 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 Jan. 2024, Hiap Teck Venture Bhd has a Sloan Ratio of 13.75%, indicating there is a warning stage of accrual build up.
Hiap Teck Venture Bhd Sloan Ratio % Related Terms
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Hiap Teck Venture Bhd (XKLS:5072) Business Description
Hiap Teck Venture Bhd is a Malaysia-based company. It has five segments. The Trading segment is involved in importing, exporting, general dealing, and leasing of steel products, hardware, and building materials; the Manufacturing segment is involved in manufacturing, selling, and renting pipes, hollow sections, scaffolding equipment, and other steel products; the Property and Investment segment is engaged in renting out property and investment holding; the Transportation segment includes a provision of transportation of goods by lorries; and the Mining and exploration segment consists of exploring, contracting and other activities related to the mining, processing, and sale of iron ore. It generates a vast majority of the revenues from the Trading segment within Malaysia.
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