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.
Melodiol Global Health's Sloan Ratio for the quarter that ended in Dec. 2023 was -232.22%.
Warning Sign:
When sloan ratio (-232.22)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2023, Melodiol Global Health has a Sloan Ratio of -232.22%, indicating earnings are more likely to be made up of accruals.
Melodiol Global Health 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 Melodiol Global Health's Sloan Ratio %
For the Drug Manufacturers - Specialty & Generic subindustry, Melodiol Global Health'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.
Melodiol Global Health's Sloan Ratio % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Melodiol Global Health's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Melodiol Global Health's Sloan Ratio % falls into.
Melodiol Global Health 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.
Melodiol Global Health'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.
Melodiol Global Health's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -28.251 (Jun. 2023 ) + -24.195 (Dec. 2023 ) = A$-52.45 Mil.
Melodiol Global Health's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -5.88 (Jun. 2023 ) + -2.261 (Dec. 2023 ) = A$-8.14 Mil.
Melodiol Global Health's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 0.212 (Jun. 2023 ) + -0.293 (Dec. 2023 ) = A$-0.08 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.
Melodiol Global Health (ASX:ME1DE) 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, Melodiol Global Health has a Sloan Ratio of -232.22%, indicating earnings are more likely to be made up of accruals.
Melodiol Global Health Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Melodiol Global Health's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Melodiol Global Health (ASX:ME1DE) Business Description
Melodiol Global Health Ltd is engaged in developing, registering, and commercialization of pharmaceutical-grade cannabis and hemp-based nutraceutical products and treatments for human and animal health. Its brands include Mernova: A licensed producer of cannabis products in Canada for sale under the Ritual brand banner. Sierra Sage Herbs: US-based developer of plant-based, beauty, and personal care brands Green Goo, Southern Butter, and Good Goo. impACTIVE: CBD topical products for athletes. Halucenex: Clinical stage psychedelics research and development operation. Creso Pharma Switzerland: CBD-related research, development, and commercialization.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
ASX:ME1DE has been successfully added to your 