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 CNR's Sloan Ratio for the quarter that ended in Mar. 2015 was -5.69%.
As of Mar. 2015, China CNR has a Sloan Ratio of -5.69%, indicating the company is in the safe zone and there is no funny business with accruals.
China CNR Sloan Ratio % Historical Data
The historical data trend for China CNR'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 CNR's Sloan Ratio %
For the Railroads subindustry, China CNR'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 CNR's Sloan Ratio % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, China CNR's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where China CNR's Sloan Ratio % falls into.
China CNR 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 CNR's Sloan Ratio for the fiscal year that ended in Dec. 2014 is calculated as
China CNR's Net Income for the trailing twelve months (TTM) ended in Mar. 2015 was 1446.84 (Jun. 2014 ) + 1635.196 (Sep. 2014 ) + 1534.078 (Dec. 2014 ) + 1007.532 (Mar. 2015 ) = ¥5,624 Mil.
China CNR's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2015 was -3624.893 (Jun. 2014 ) + -46.533 (Sep. 2014 ) + 26138.486 (Dec. 2014 ) + -2415.238 (Mar. 2015 ) = ¥20,052 Mil.
China CNR's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2015 was -504.436 (Jun. 2014 ) + -923.507 (Sep. 2014 ) + -6695.107 (Dec. 2014 ) + 1746.597 (Mar. 2015 ) = ¥-6,376 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 CNR (SHSE:601299) 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. 2015, China CNR has a Sloan Ratio of -5.69%, indicating the company is in the safe zone and there is no funny business with accruals.
China CNR Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of China CNR's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
China CNR Corp Ltd was founded in 1881. The Company is engaged in research and development, manufacturing, refurbishment, technology services and leasing of various products such as rolling stock, mechanical and electric equipment, environmental protection equipment and ancillary components. Its products include electric and diesel locomotives; high-speed trains; multiple units; metro cars; mass transit vehicles, such as trams and light rail vehicles; coaches; open-top, covered, hopper, flat, side dump, tank, and special wagons; and track machinery. The Company also offers rail components, such as motors and generators for locomotives, urban rail vehicles, oil drilling machines, mining machinery, metallurgical machinery, and wind-driven generators; and electric control equipment, locomotive components, vehicle components, castings, and forgings, among others.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
SHSE:601299 has been successfully added to your 