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.
Kin Shing Holdings's Sloan Ratio for the quarter that ended in Sep. 2023 was -3.55%.
As of Sep. 2023, Kin Shing Holdings has a Sloan Ratio of -3.55%, indicating the company is in the safe zone and there is no funny business with accruals.
Kin Shing Holdings Sloan Ratio % Historical Data
The historical data trend for Kin Shing Holdings'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 Kin Shing Holdings's Sloan Ratio %
For the Engineering & Construction subindustry, Kin Shing 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.
Kin Shing Holdings's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Kin Shing Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Kin Shing Holdings's Sloan Ratio % falls into.
Kin Shing 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.
Kin Shing Holdings's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Kin Shing Holdings's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was 16.125 (Mar. 2023 ) + -6.552 (Sep. 2023 ) = HK$9.6 Mil.
Kin Shing Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was 58.329 (Mar. 2023 ) + -20.726 (Sep. 2023 ) = HK$37.6 Mil.
Kin Shing Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was -5.695 (Mar. 2023 ) + -4.935 (Sep. 2023 ) = HK$-10.6 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.
Kin Shing Holdings (HKSE:01630) 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. 2023, Kin Shing Holdings has a Sloan Ratio of -3.55%, indicating the company is in the safe zone and there is no funny business with accruals.
Kin Shing Holdings Sloan Ratio % Related Terms
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Kin Shing Holdings (HKSE:01630) Business Description
Kin Shing Holdings Ltd is an investment holding company. The group is a formwork subcontractor. The operating segments of the company include the Formwork works segment which is engaged in the provision of formwork works and other ancillary works and the Building construction works segment and the Trading and Investment business which is engaged in investing in financial instruments. The company generates maximum revenue from the Formwork works segment. Geographically, the group's operations are located in Hong Kong.
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