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.
Greenpro Capital's Sloan Ratio for the quarter that ended in Dec. 2023 was 31.91%.
Warning Sign:
When sloan ratio (31.92)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2023, Greenpro Capital has a Sloan Ratio of 31.91%, indicating earnings are more likely to be made up of accruals.
Greenpro Capital Sloan Ratio % Historical Data
The historical data trend for Greenpro Capital'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 Greenpro Capital's Sloan Ratio %
For the Consulting Services subindustry, Greenpro Capital'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.
Greenpro Capital's Sloan Ratio % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Greenpro Capital's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Greenpro Capital's Sloan Ratio % falls into.
Greenpro Capital 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.
Greenpro Capital's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Greenpro Capital's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 0.031 (Mar. 2023 ) + 6.667 (Jun. 2023 ) + -0.117 (Sep. 2023 ) + -5.508 (Dec. 2023 ) = $1.07 Mil.
Greenpro Capital's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -0.752 (Mar. 2023 ) + -0.343 (Jun. 2023 ) + -0.199 (Sep. 2023 ) + -0.301 (Dec. 2023 ) = $-1.60 Mil.
Greenpro Capital's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.001 (Mar. 2023 ) + -0.015 (Jun. 2023 ) + 0.001 (Sep. 2023 ) + -0.08 (Dec. 2023 ) = $-0.10 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.
Greenpro Capital (NAS:GRNQ) 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, Greenpro Capital has a Sloan Ratio of 31.91%, indicating earnings are more likely to be made up of accruals.
Greenpro Capital Sloan Ratio % Related Terms
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Greenpro Capital (Greenpro Capital) Business Description
Greenpro Capital Corp operates and provides business solution services to small and medium-size businesses located in South-East Asia and East Asia, with focus on Hong Kong, China and Malaysia, and in Thailand and Taiwan. Its range of services includes cross border business solutions, record management services, and accounting outsourcing services. Cross-border business services include,other services, tax planning, trust and wealth management, cross border listing advisory services and transaction services. It also operates a venture capital business. Its segments include Service business engaged in provision of corporate advisory and business solution service; and Real estate business engaged in trading or leasing of commercial real estate properties in Hong Kong and Malaysia.
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