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.
* 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 AEON Stores (Hong Kong) Co's Sloan Ratio %
For the Department Stores subindustry, AEON Stores (Hong Kong) Co'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.
AEON Stores (Hong Kong) Co's Sloan Ratio % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, AEON Stores (Hong Kong) Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where AEON Stores (Hong Kong) Co's Sloan Ratio % falls into.
AEON Stores (Hong Kong) Co 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.
AEON Stores (Hong Kong) Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -78.194 (Jun. 2023 ) + -110.465 (Dec. 2023 ) = HK$-189 Mil.
AEON Stores (Hong Kong) Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 520.97 (Jun. 2023 ) + 427.385 (Dec. 2023 ) = HK$948 Mil.
AEON Stores (Hong Kong) Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -185.344 (Jun. 2023 ) + -75.076 (Dec. 2023 ) = HK$-260 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.
AEON Stores (Hong Kong) Co (HKSE:00984) 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, AEON Stores (Hong Kong) Co has a Sloan Ratio of -15.71%, indicating there is a warning stage of accrual build up.
AEON Stores (Hong Kong) Co Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of AEON Stores (Hong Kong) Co's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
AEON Stores (Hong Kong) Co (HKSE:00984) Business Description
AEON Stores (Hong Kong) Co Ltd and its subsidiaries are engaged in the operation of retail stores. It offers household products, clothing and food products, among others. The company also provides facilities such as a lounge, free home delivery, free parking, gift wrapping, self-express, free ice pack, gift certificate selling, chilled lockers, trolley-lending, and customer voice services. Some of its brands are TOPVALU, HOME COORDY, iC innercasual and Kids Republic. It has two reportable segments that are Hongkong and the PRC.
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