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.
BOC Aviation's Sloan Ratio for the quarter that ended in Dec. 2023 was 5.31%.
As of Dec. 2023, BOC Aviation has a Sloan Ratio of 5.31%, indicating the company is in the safe zone and there is no funny business with accruals.
BOC Aviation Sloan Ratio % Historical Data
The historical data trend for BOC Aviation'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 BOC Aviation's Sloan Ratio %
For the Rental & Leasing Services subindustry, BOC Aviation'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.
BOC Aviation's Sloan Ratio % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, BOC Aviation's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where BOC Aviation's Sloan Ratio % falls into.
BOC Aviation 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.
BOC Aviation's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
BOC Aviation's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 2048.76 (Jun. 2023 ) + 3923.23 (Dec. 2023 ) = HK$5,972 Mil.
BOC Aviation's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 8021.094 (Jun. 2023 ) + 9834.006 (Dec. 2023 ) = HK$17,855 Mil.
BOC Aviation's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -8566.615 (Jun. 2023 ) + -13341.926 (Dec. 2023 ) = HK$-21,909 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.
BOC Aviation (HKSE:02588) 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, BOC Aviation has a Sloan Ratio of 5.31%, indicating the company is in the safe zone and there is no funny business with accruals.
BOC Aviation Sloan Ratio % Related Terms
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BOC Aviation is the world's fifth-largest aircraft leasing company by net book value of owned aircraft, with a portfolio of more than 600 commercial passenger and cargo aircraft. The company was founded in 1993 in Singapore as a joint venture between Singapore Airlines and U.S.-based Boullioun Aviation Services. In 2006, the company was acquired by the Bank of China and took on its current name. Listed on the Stock Exchange of Hong Kong in 2016, BOC Aviation remains headquartered in Singapore, but has operations in Dublin, London, New York, and Tianjin. Bank of China remains its largest shareholder with a 70% stake. BOC Aviation has an international management team with its key leaders having more than 30 years of experience in the aircraft and leasing business.
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