What is Beijing Enterprises Holdings Sloan Ratio %?
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, Beijing Enterprises Holdings has a Sloan Ratio of 2.36%, indicating the company is in the safe zone and there is no funny business with accruals.
Beijing Enterprises Holdings 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 Beijing Enterprises Holdings's Sloan Ratio %
For the Conglomerates subindustry, Beijing Enterprises Holdings'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.
Beijing Enterprises Holdings's Sloan Ratio % Distribution in the Conglomerates Industry
For the Conglomerates industry and Industrials sector, Beijing Enterprises Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Beijing Enterprises Holdings's Sloan Ratio % falls into.
Beijing Enterprises Holdings 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.
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Beijing Enterprises Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 547.787 (Jun. 2023 ) + 165.841 (Dec. 2023 ) = €714 Mil.
Beijing Enterprises Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 369.951 (Jun. 2023 ) + 375.31 (Dec. 2023 ) = €745 Mil.
Beijing Enterprises Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -659.576 (Jun. 2023 ) + 2.195 (Dec. 2023 ) = €-657 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.
Beijing Enterprises Holdings (FRA:BJEB) 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, Beijing Enterprises Holdings has a Sloan Ratio of 2.36%, indicating the company is in the safe zone and there is no funny business with accruals.
Beijing Enterprises Holdings Sloan Ratio % Related Terms
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Beijing Enterprises Holdings (FRA:BJEB) Business Description
Beijing Enterprises Holdings was founded in 1997 and it is the listed flagship of the Beijing municipal government. It has a diversified business portfolio with focus on public utilities, including gas distribution and transmission, sewage and water treatment, and waste-to-energy business. It also invests in an upstream Russia oil and gas company, and owns 80% of Yanjing Brewery, one of the leading domestic brewers. The business mix is approximately 70% in gas operation, with the rest in water, waste treatment, and beer businesses.
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