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.
Haier Smart Home Co's Sloan Ratio for the quarter that ended in Sep. 2024 was 5.09%.
As of Sep. 2024, Haier Smart Home Co has a Sloan Ratio of 5.09%, indicating the company is in the safe zone and there is no funny business with accruals.
Haier Smart Home Co Sloan Ratio % Historical Data
The historical data trend for Haier Smart Home Co'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 Haier Smart Home Co's Sloan Ratio %
For the Furnishings, Fixtures & Appliances subindustry, Haier Smart Home Co'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.
Haier Smart Home Co's Sloan Ratio % Distribution in the Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Haier Smart Home Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Haier Smart Home Co's Sloan Ratio % falls into.
Haier Smart Home Co 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.
Haier Smart Home Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Haier Smart Home Co's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 443.062 (Dec. 2023 ) + 609.752 (Mar. 2024 ) + 723.158 (Jun. 2024 ) + 602.818 (Sep. 2024 ) = €2,379 Mil.
Haier Smart Home Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 1548.807 (Dec. 2023 ) + 220.34 (Mar. 2024 ) + 780.303 (Jun. 2024 ) + 771.301 (Sep. 2024 ) = €3,321 Mil.
Haier Smart Home Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -1061.518 (Dec. 2023 ) + -282.522 (Mar. 2024 ) + -655.983 (Jun. 2024 ) + -601.739 (Sep. 2024 ) = €-2,602 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.
Haier Smart Home Co (XTER:690D) 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, Haier Smart Home Co has a Sloan Ratio of 5.09%, indicating the company is in the safe zone and there is no funny business with accruals.
Haier Smart Home Co Sloan Ratio % Related Terms
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Haier Smart Home is one of the largest household appliance manufacturers globally, with key products spanning refrigerators, washing machines, kitchen appliances, air conditioners, and water solutions. It has been consistently among the top three in China by retail sales in most home appliance categories. The company has also established a footprint in distribution channel services and commercial refrigeration business. Haier generates around 50% of sales outside China. As of December 2023, Haier Group and its subsidiaries are the largest shareholders of Haier Smart Home with around 29% equity interest in aggregate.
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