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, China Dongxiang (Group) Co has a Sloan Ratio of 5.59%, indicating the company is in the safe zone and there is no funny business with accruals.
China Dongxiang (Group) Co 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 China Dongxiang (Group) Co's Sloan Ratio %
For the Apparel Manufacturing subindustry, China Dongxiang (Group) 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.
China Dongxiang (Group) Co's Sloan Ratio % Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, China Dongxiang (Group) Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where China Dongxiang (Group) Co's Sloan Ratio % falls into.
China Dongxiang (Group) 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.
China Dongxiang (Group) Co's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was 525.073 (Mar. 2023 ) + -439.502 (Sep. 2023 ) = HK$86 Mil.
China Dongxiang (Group) Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was 90.338 (Mar. 2023 ) + 163.023 (Sep. 2023 ) = HK$253 Mil.
China Dongxiang (Group) Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was 36.211 (Mar. 2023 ) + -818.011 (Sep. 2023 ) = HK$-782 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 Dongxiang (Group) Co (HKSE:03818) 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, China Dongxiang (Group) Co has a Sloan Ratio of 5.59%, indicating the company is in the safe zone and there is no funny business with accruals.
China Dongxiang (Group) Co Sloan Ratio % Related Terms
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China Dongxiang (Group) Co (HKSE:03818) Business Description
China Dongxiang (Group) Co Ltd manufactures sports apparel and footwear. Its main brand is Kappa, which it sells in China. The company's primary sales channel is wholesale to distributors. The company also sells directly to consumers through more than 1,000 company-operated retail stores and outlets in China and through its e-commerce channel. It has two segments China Apparel and Investment. Sales in China account for most of the total company's revenue.
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