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 Dec. 2023, Charoen Pokphand Foods PCL has a Sloan Ratio of -2.35%, indicating the company is in the safe zone and there is no funny business with accruals.
Charoen Pokphand Foods PCL 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 Charoen Pokphand Foods PCL's Sloan Ratio %
For the Farm Products subindustry, Charoen Pokphand Foods PCL'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.
Charoen Pokphand Foods PCL's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Charoen Pokphand Foods PCL's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Charoen Pokphand Foods PCL's Sloan Ratio % falls into.
Charoen Pokphand Foods PCL 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.
Charoen Pokphand Foods PCL's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -79.076 (Mar. 2023 ) + -22.693 (Jun. 2023 ) + -50.464 (Sep. 2023 ) + 3.461 (Dec. 2023 ) = $-149 Mil.
Charoen Pokphand Foods PCL's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 169.157 (Mar. 2023 ) + 124.463 (Jun. 2023 ) + 299.971 (Sep. 2023 ) + 412.243 (Dec. 2023 ) = $1,006 Mil.
Charoen Pokphand Foods PCL's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -123.741 (Mar. 2023 ) + -36.094 (Jun. 2023 ) + -174.936 (Sep. 2023 ) + -223.372 (Dec. 2023 ) = $-558 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.
Charoen Pokphand Foods PCL (OTCPK:CHPFF) 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, Charoen Pokphand Foods PCL has a Sloan Ratio of -2.35%, indicating the company is in the safe zone and there is no funny business with accruals.
Charoen Pokphand Foods PCL Sloan Ratio % Related Terms
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Charoen Pokphand Foods PCL (Charoen Pokphand Foods PCL) Business Description
Charoen Pokphand Foods PCL operates in agro-industrial and integrated food businesses. The group's business operations are located throughout Thailand and overseas. The businesses are divided into two main segments namely the livestock business which comprises chicken, duck and pigs and the aquaculture business comprises shrimp and fish. The two main businesses are vertically integrated, starting from sourcing raw materials for animal feed production, manufacturing animal feed, breeding animals, farming animals for commercial purposes, primary processing meat, producing ready-to-eat food products, and including operating food retail outlets and restaurants.
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