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.
China Mobile's Sloan Ratio for the quarter that ended in Mar. 2024 was 0.00%.
As of Mar. 2024, China Mobile has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
China Mobile Sloan Ratio % Historical Data
The historical data trend for China Mobile'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 China Mobile's Sloan Ratio %
For the Telecom Services subindustry, China Mobile'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.
China Mobile's Sloan Ratio % Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, China Mobile's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where China Mobile's Sloan Ratio % falls into.
China Mobile 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.
China Mobile's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
China Mobile's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 6717.402 (Jun. 2023 ) + 4019.375 (Sep. 2023 ) + 3677.768 (Dec. 2023 ) + 4111.505 (Mar. 2024 ) = $18,526 Mil.
China Mobile's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 11913.872 (Jun. 2023 ) + 10571.945 (Sep. 2023 ) + 0 (Dec. 2023 ) + 7901.687 (Mar. 2024 ) = $30,388 Mil.
China Mobile's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -3565.504 (Jun. 2023 ) + -6637.937 (Sep. 2023 ) + -13725.246 (Dec. 2023 ) + -2845.379 (Mar. 2024 ) = $-26,774 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.
China Mobile (NYSE:CHL) 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 Mar. 2024, China Mobile has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
China Mobile Sloan Ratio % Related Terms
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China Mobile is not only the largest telecom operator in China by the number of mobile subscribers (990 million) but also the largest in the world. It has 60% of the total wireless market in China and 45% of the fixed-line broadband market. The firm is continuing to roll out its 5G network, having launched 5G service in late 2019. It is doing some 5G network sharing with China Broadnet at 700 MHz and also resells its 2G/4G/5G network through China Broadnet. Strong growth is being generated through internet data centers where it has the second-largest network in China and through Cloud Services. The company issued stock on the A-share market in 2022 and completed its first buyback of H-shares.
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