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.
Winall Hi-tech Seed Co's Sloan Ratio for the quarter that ended in Mar. 2024 was 13.76%.
As of Mar. 2024, Winall Hi-tech Seed Co has a Sloan Ratio of 13.76%, indicating there is a warning stage of accrual build up.
Winall Hi-tech Seed 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 Winall Hi-tech Seed Co's Sloan Ratio %
For the Farm Products subindustry, Winall Hi-tech Seed 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.
Winall Hi-tech Seed Co's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Winall Hi-tech Seed Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Winall Hi-tech Seed Co's Sloan Ratio % falls into.
Winall Hi-tech Seed 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.
Winall Hi-tech Seed Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Winall Hi-tech Seed Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 8.103 (Jun. 2023 ) + -28.783 (Sep. 2023 ) + 263.226 (Dec. 2023 ) + 17.744 (Mar. 2024 ) = ¥260 Mil.
Winall Hi-tech Seed Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 38.036 (Jun. 2023 ) + 671.795 (Sep. 2023 ) + -412.207 (Dec. 2023 ) + -633.234 (Mar. 2024 ) = ¥-336 Mil.
Winall Hi-tech Seed Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -100.404 (Jun. 2023 ) + -35.838 (Sep. 2023 ) + -66.774 (Dec. 2023 ) + -55.472 (Mar. 2024 ) = ¥-258 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.
Winall Hi-tech Seed Co (SZSE:300087) 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. 2024, Winall Hi-tech Seed Co has a Sloan Ratio of 13.76%, indicating there is a warning stage of accrual build up.
Winall Hi-tech Seed Co Sloan Ratio % Related Terms
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Winall Hi-tech Seed Co (SZSE:300087) Business Description
Winall Hi-tech Seed Co Ltd is a seed company. It is engaged in the breeding of various crop seeds in China. The company produces hybrid rice varieties from double cropping; and three-line two-line hybrid rice varieties, as well as corn, wheat, cottonseed oil, vegetables, west melon, pumpkin, and other crop seeds.
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