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 Pharma Holding's Sloan Ratio for the quarter that ended in Mar. 2024 was 0.00%.
As of Mar. 2024, China Pharma Holding has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
China Pharma Holding Sloan Ratio % Historical Data
The historical data trend for China Pharma Holding'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 Pharma Holding's Sloan Ratio %
For the Drug Manufacturers - Specialty & Generic subindustry, China Pharma Holding'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 Pharma Holding's Sloan Ratio % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, China Pharma Holding's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where China Pharma Holding's Sloan Ratio % falls into.
China Pharma Holding 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 Pharma Holding's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
China Pharma Holding's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -0.593 (Jun. 2023 ) + -0.778 (Sep. 2023 ) + -1.232 (Dec. 2023 ) + -0.956 (Mar. 2024 ) = $-3.56 Mil.
China Pharma Holding's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -0.216 (Jun. 2023 ) + 1.007 (Sep. 2023 ) + -0.022 (Dec. 2023 ) + -0.585 (Mar. 2024 ) = $0.18 Mil.
China Pharma Holding's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 0.005 (Jun. 2023 ) + -0.067 (Sep. 2023 ) + -0.005 (Dec. 2023 ) + 0 (Mar. 2024 ) = $-0.07 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 Pharma Holding (OTCPK:CPHI) 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 Pharma Holding has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
China Pharma Holding Sloan Ratio % Related Terms
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China Pharma Holding (China Pharma Holding) Business Description
China Pharma Holding Inc is a drug manufacturing company. It is mainly engaged in the development, manufacture, and marketing of pharmaceutical products for human use in connection with a variety of high-incidence and high-mortality diseases and medical conditions prevalent in the People's Republic of China. The company mainly manufactures pharmaceutical products in the form of dry powder injectables, liquid injectables, tablets, capsules, and cephalosporin oral solutions. The product line of the company includes cefaclor dispersible tablets, clarithromycin granules, roxithromycin dispersible tablets, andrographolide tablets, ozagrel sodium for injection, gastrodin injection, and others.
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