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 Sep. 2023, Jiangsu Yanghe Brewery JSC has a Sloan Ratio of -0.16%, indicating the company is in the safe zone and there is no funny business with accruals.
Jiangsu Yanghe Brewery JSC 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 Jiangsu Yanghe Brewery JSC's Sloan Ratio %
For the Beverages - Wineries & Distilleries subindustry, Jiangsu Yanghe Brewery JSC'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.
Jiangsu Yanghe Brewery JSC's Sloan Ratio % Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Jiangsu Yanghe Brewery JSC's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Jiangsu Yanghe Brewery JSC's Sloan Ratio % falls into.
Jiangsu Yanghe Brewery JSC 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.
Jiangsu Yanghe Brewery JSC's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was 305.989 (Dec. 2022 ) + 5766.048 (Mar. 2023 ) + 2096.333 (Jun. 2023 ) + 2341.088 (Sep. 2023 ) = ¥10,509 Mil.
Jiangsu Yanghe Brewery JSC's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was 4603.624 (Dec. 2022 ) + 1402.723 (Mar. 2023 ) + -1137.691 (Jun. 2023 ) + 4078.435 (Sep. 2023 ) = ¥8,947 Mil.
Jiangsu Yanghe Brewery JSC's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was 803.93 (Dec. 2022 ) + -1018.446 (Mar. 2023 ) + 2552.984 (Jun. 2023 ) + -675.712 (Sep. 2023 ) = ¥1,663 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.
Jiangsu Yanghe Brewery JSC (SZSE:002304) 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, Jiangsu Yanghe Brewery JSC has a Sloan Ratio of -0.16%, indicating the company is in the safe zone and there is no funny business with accruals.
Jiangsu Yanghe Brewery JSC Sloan Ratio % Related Terms
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Jiangsu Yanghe Brewery JSC (SZSE:002304) Business Description
Jiangsu Yanghe Brewery, founded in 2002, manufactures and markets baijiu (a distilled Chinese liquor) under the Yanghe, Shuanggou, and Sujiu brands. Yanghe's key products include the Blue Classic series, which accounted for about 80% of total sales, such as premium Dream Blue, mid- to high-end Sky Blue, and mass-market Ocean Blue. The company achieved revenue of CNY 30 billion in 2022, with half of sales from the non-Jiangsu market, leveraging its more than 8,000 distributors across China.
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