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 Star Plus Legend Holdings's Sloan Ratio %
For the Packaged Foods subindustry, Star Plus Legend 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.
Star Plus Legend Holdings's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Star Plus Legend Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Star Plus Legend Holdings's Sloan Ratio % falls into.
Star Plus Legend 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.
Star Plus Legend Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Star Plus Legend Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 14.249 (Jun. 2023 ) + 23.503 (Dec. 2023 ) = HK$37.8 Mil.
Star Plus Legend Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -13.842 (Jun. 2023 ) + -116.136 (Dec. 2023 ) = HK$-130.0 Mil.
Star Plus Legend Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -4.057 (Jun. 2023 ) + -148.706 (Dec. 2023 ) = HK$-152.8 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.
Star Plus Legend Holdings (HKSE:06683) 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, Star Plus Legend Holdings has a Sloan Ratio of 32.46%, indicating earnings are more likely to be made up of accruals.
Star Plus Legend Holdings Sloan Ratio % Related Terms
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Star Plus Legend Holdings (HKSE:06683) Business Description
Star Plus Legend Holdings Ltd is an investment holding company. The company and its subsidiaries are principally engaged in new retail business and IP creation and operation business in the People's Republic of China. In the new retail business, the company primarily develops and sells health management products and skincare products. In the IP creation and operation business, the company creates unique celebrity IPs by providing planning and other project management services to media content, acting as an event planning service provider and investor in large-scale concerts featuring celebrities and other events, together with designing and licensing proprietary celebrity IPs. The majority of revenue is derived from the new retail business.
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