What is China Education Group Holdings Sloan Ratio %?
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 Aug. 2023, China Education Group Holdings has a Sloan Ratio of 1.20%, indicating the company is in the safe zone and there is no funny business with accruals.
China Education Group Holdings 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.
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China Education Group Holdings Sloan Ratio % Chart
Competitive Comparison of China Education Group Holdings's Sloan Ratio %
For the Education & Training Services subindustry, China Education Group 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.
China Education Group Holdings's Sloan Ratio % Distribution in the Education Industry
For the Education industry and Consumer Defensive sector, China Education Group Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where China Education Group Holdings's Sloan Ratio % falls into.
China Education Group 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.
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
China Education Group Holdings's Net Income for the trailing twelve months (TTM) ended in Aug. 2023 was 1121.178 (Feb. 2023 ) + 435.118 (Aug. 2023 ) = HK$1,556 Mil.
China Education Group Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Aug. 2023 was 1111.998 (Feb. 2023 ) + 3106.292 (Aug. 2023 ) = HK$4,218 Mil.
China Education Group Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Aug. 2023 was -3528.785 (Feb. 2023 ) + 401.648 (Aug. 2023 ) = HK$-3,127 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 Education Group Holdings (HKSE:00839) 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 Aug. 2023, China Education Group Holdings has a Sloan Ratio of 1.20%, indicating the company is in the safe zone and there is no funny business with accruals.
China Education Group Holdings Sloan Ratio % Related Terms
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China Education Group Holdings (HKSE:00839) Business Description
China Education Group Holdings Ltd is a leading ultra-large-scale private education group in China with 30 years of experience in higher education operations. CEG's schools offer both higher vocational education and secondary vocational education. The school network spans domestic China and overseas. CEG also offers continuing education to full-time working adults. The group's total enrolled full-time students in China expanded more than 3 times over the last six years to about 248,000 as of August 2023. The rapid growth is primarily attributable to school acquisitions. CEG currently operates 14 schools, up from only 3 in 2017.
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