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.
Aluminum of China's Sloan Ratio for the quarter that ended in Mar. 2024 was -5.01%.
As of Mar. 2024, Aluminum of China has a Sloan Ratio of -5.01%, indicating the company is in the safe zone and there is no funny business with accruals.
Aluminum of China Sloan Ratio % Historical Data
The historical data trend for Aluminum of China'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 Aluminum of China's Sloan Ratio %
For the Aluminum subindustry, Aluminum of China'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.
Aluminum of China's Sloan Ratio % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Aluminum of China's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Aluminum of China's Sloan Ratio % falls into.
Aluminum of China 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.
Aluminum of China's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Aluminum of China's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 223.936 (Jun. 2023 ) + 265.246 (Sep. 2023 ) + 191.099 (Dec. 2023 ) + 309.695 (Mar. 2024 ) = $990 Mil.
Aluminum of China's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 887.559 (Jun. 2023 ) + 1383.198 (Sep. 2023 ) + 929.753 (Dec. 2023 ) + 496.85 (Mar. 2024 ) = $3,697 Mil.
Aluminum of China's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -688.905 (Jun. 2023 ) + -27.374 (Sep. 2023 ) + -742.086 (Dec. 2023 ) + 236.632 (Mar. 2024 ) = $-1,222 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.
Aluminum of China (OTCPK:ACHHY) 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 Mar. 2024, Aluminum of China has a Sloan Ratio of -5.01%, indicating the company is in the safe zone and there is no funny business with accruals.
Aluminum of China Sloan Ratio % Related Terms
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Aluminum of China (Aluminum of China) Business Description
Aluminum Corp of China Ltd is an aluminum producer. The Alumina segment consists of the mining and purchase of bauxite and other raw materials. The Primary aluminum segment consists of the procurement of alumina, supplemental materials, and electric power. Its Energy segment comprises the production and operation of energy products mainly coal mining. The Trading segment includes the trading of alumina primary aluminum, aluminum fabrication products, other non-ferrous metal products and Corporate and other operating segments. Geographically, it operates in Mainland China, as well as other countries. It generates a major part of its revenue from the Trading segment.
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