Hunan Aerospace Huanyu Communication Technology Co (SHSE:688523) Sloan Ratio % : 38.04% (As of Mar. 2024)

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What is Hunan Aerospace Huanyu Communication Technology Co 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.

Hunan Aerospace Huanyu Communication Technology Co's Sloan Ratio for the quarter that ended in Mar. 2024 was 38.04%.

Warning Sign:

When sloan ratio (37.29)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.

As of Mar. 2024, Hunan Aerospace Huanyu Communication Technology Co has a Sloan Ratio of 38.04%, indicating earnings are more likely to be made up of accruals.

Hunan Aerospace Huanyu Communication Technology Co Sloan Ratio % Historical Data

The historical data trend for Hunan Aerospace Huanyu Communication Technology Co'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.

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Hunan Aerospace Huanyu Communication Technology Co Sloan Ratio % Chart

Hunan Aerospace Huanyu Communication Technology Co Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Sloan Ratio %

8.13

17.06

12.41

13.26

37.29

Hunan Aerospace Huanyu Communication Technology Co Quarterly Data
	Dec19	Dec20	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Sloan Ratio %	Get a 7-Day Free Trial								14.60	38.46	43.35	37.29	38.04

Competitive Comparison of Hunan Aerospace Huanyu Communication Technology Co's Sloan Ratio %

For the Aerospace & Defense subindustry, Hunan Aerospace Huanyu Communication Technology 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.

Hunan Aerospace Huanyu Communication Technology Co's Sloan Ratio % Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Hunan Aerospace Huanyu Communication Technology Co's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Hunan Aerospace Huanyu Communication Technology Co's Sloan Ratio % falls into.

Hunan Aerospace Huanyu Communication Technology 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.

Hunan Aerospace Huanyu Communication Technology Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (A: Dec. 2023 )	-	Cash Flow from Operations (A: Dec. 2023 )
	-	Cash Flow from Investing (A: Dec. 2023 ))	/	Total Assets (A: Dec. 2023 )
	=	(134.378	-	39.261
	-	-773.152)	/	2328.537
	=	37.29%

Hunan Aerospace Huanyu Communication Technology Co's Sloan Ratio for the quarter that ended in Mar. 2024 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Mar. 2024 )
	=	(132.858	-	54.81
	-	-775.158)	/	2243.034
	=	38.04%

Hunan Aerospace Huanyu Communication Technology Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 12.172 (Jun. 2023 ) + 33.259 (Sep. 2023 ) + 83.374 (Dec. 2023 ) + 4.053 (Mar. 2024 ) = ¥132.9 Mil.
Hunan Aerospace Huanyu Communication Technology Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -3.678 (Jun. 2023 ) + -30.924 (Sep. 2023 ) + 158.981 (Dec. 2023 ) + -69.569 (Mar. 2024 ) = ¥54.8 Mil.
Hunan Aerospace Huanyu Communication Technology Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -647.781 (Jun. 2023 ) + -120.941 (Sep. 2023 ) + 24.871 (Dec. 2023 ) + -31.307 (Mar. 2024 ) = ¥-775.2 Mil.

Hunan Aerospace Huanyu Communication Technology Co (SHSE:688523) 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.

According to How to Beat the Market with the Sloan Ratio:

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. 2024, Hunan Aerospace Huanyu Communication Technology Co has a Sloan Ratio of 38.04%, indicating earnings are more likely to be made up of accruals.

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Hunan Aerospace Huanyu Communication Technology Co (SHSE:688523) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Hunan Aerospace Huanyu Communication Technology Co Ltd (SHSE:688523) » Definitions » Sloan Ratio %

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Address

No. 6 Xingkang South Road, Yuelu District, Hunan, Changsha, CHN, 410205

Website

http://www.hthykj.com

Hunan Aerospace Huanyu Communication Technology Co Ltd is mainly engaged in the R&D, manufacturing and service of space-borne high-end microwave communication, satellite communication, aerospace technology equipment and high-end composite material parts and components. The company is committed to providing product support and engineering application services for major aerospace host units.

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