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.
Eng Kah Bhd's Sloan Ratio for the quarter that ended in Mar. 2024 was -16.12%.
As of Mar. 2024, Eng Kah Bhd has a Sloan Ratio of -16.12%, indicating there is a warning stage of accrual build up.
Eng Kah Bhd Sloan Ratio % Historical Data
The historical data trend for Eng Kah Bhd'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 Eng Kah Bhd's Sloan Ratio %
For the Household & Personal Products subindustry, Eng Kah Bhd'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.
Eng Kah Bhd's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Eng Kah Bhd's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Eng Kah Bhd's Sloan Ratio % falls into.
Eng Kah Bhd 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.
Eng Kah Bhd's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Eng Kah Bhd's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -0.227 (Jun. 2023 ) + -1.466 (Sep. 2023 ) + -1.851 (Dec. 2023 ) + -0.499 (Mar. 2024 ) = RM-4.04 Mil.
Eng Kah Bhd's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 1.109 (Jun. 2023 ) + 0.581 (Sep. 2023 ) + 1.576 (Dec. 2023 ) + 3.563 (Mar. 2024 ) = RM6.83 Mil.
Eng Kah Bhd's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -0.07 (Jun. 2023 ) + -0.27 (Sep. 2023 ) + 0.447 (Dec. 2023 ) + 0.031 (Mar. 2024 ) = RM0.14 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.
Eng Kah Bhd (XKLS:7149) 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, Eng Kah Bhd has a Sloan Ratio of -16.12%, indicating there is a warning stage of accrual build up.
Eng Kah Bhd Sloan Ratio % Related Terms
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Eng Kah Corp Bhd is in the business of personal care products. The company and its subsidiaries are engaged in the contract manufacturing of perfumery, color cosmetics, skincare, toiletry and household products. Its segments are divided into three which includes Personal care, Household, and Others. The Personal care segment which generates the majority of revenue is involved in the manufacturing of cosmetics, skin care, perfumes, and other toiletry products. The Household segment consists of the manufacturing of household products. Its Others segment comprises investment holding. The company has its operations in Malaysia and its products are distributed primarily in Malaysia, Australia, Hong Kong, and Others.
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