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.
AWC Bhd's Sloan Ratio for the quarter that ended in Dec. 2023 was 15.93%.
As of Dec. 2023, AWC Bhd has a Sloan Ratio of 15.93%, indicating there is a warning stage of accrual build up.
AWC Bhd Sloan Ratio % Historical Data
The historical data trend for AWC 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.
For the Engineering & Construction subindustry, AWC 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.
AWC Bhd's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, AWC Bhd's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where AWC Bhd's Sloan Ratio % falls into.
AWC 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.
AWC Bhd's Sloan Ratio for the fiscal year that ended in Jun. 2023 is calculated as
AWC Bhd's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 4.556 (Mar. 2023 ) + -13.341 (Jun. 2023 ) + 0.467 (Sep. 2023 ) + 5.841 (Dec. 2023 ) = RM-2.5 Mil.
AWC Bhd's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -26.761 (Mar. 2023 ) + 21.422 (Jun. 2023 ) + -5.95 (Sep. 2023 ) + 87.932 (Dec. 2023 ) = RM76.6 Mil.
AWC Bhd's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 9.327 (Mar. 2023 ) + -9.816 (Jun. 2023 ) + -5.06 (Sep. 2023 ) + -141.926 (Dec. 2023 ) = RM-147.5 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.
AWC Bhd (XKLS:7579) 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 Dec. 2023, AWC Bhd has a Sloan Ratio of 15.93%, indicating there is a warning stage of accrual build up.
AWC Bhd Sloan Ratio % Related Terms
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AWC Bhd is an investment holding company that provides total asset management services such as integrated facilities management and engineering services to building owners. The company has five divisions namely, Facilities division engages in the provision of integrated range of maintenance services for office, commercial, industrial, residential and administrative buildings; Engineering division comprises plumbing and air-conditioning; Environment division comprises of pneumatic technology used for waste collection and transports it via reticulated pipes, Investment holding division offers group-level corporate services, and Rail division provides railway infrastructure works. The Facilities division derives the majority of revenue.
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