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.
Blue Biofuels's Sloan Ratio for the quarter that ended in Mar. 2024 was 0.00%.
Warning Sign:
When sloan ratio (-110.1)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Mar. 2024, Blue Biofuels has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Blue Biofuels Sloan Ratio % Historical Data
The historical data trend for Blue Biofuels'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 Blue Biofuels's Sloan Ratio %
For the Specialty Chemicals subindustry, Blue Biofuels'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.
Blue Biofuels's Sloan Ratio % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Blue Biofuels's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Blue Biofuels's Sloan Ratio % falls into.
Blue Biofuels 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.
Blue Biofuels's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Blue Biofuels's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -1.154 (Jun. 2023 ) + -0.332 (Sep. 2023 ) + -0.505 (Dec. 2023 ) + -0.62 (Mar. 2024 ) = $-2.61 Mil.
Blue Biofuels's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -0.571 (Jun. 2023 ) + -0.314 (Sep. 2023 ) + -0.106 (Dec. 2023 ) + -0.256 (Mar. 2024 ) = $-1.25 Mil.
Blue Biofuels's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 0 (Jun. 2023 ) + -0.013 (Sep. 2023 ) + -0.013 (Dec. 2023 ) + -0.021 (Mar. 2024 ) = $-0.05 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.
Blue Biofuels (OTCPK:BIOF) 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, Blue Biofuels has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Blue Biofuels Sloan Ratio % Related Terms
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Blue Biofuels (Blue Biofuels) Business Description
Blue Biofuels Inc is a technology company focused on emerging technologies in the renewable energy, biofuels, and new technologies sectors. It developed a technology system called Cellulose-to-Sugar 2.0 (CTS 2.0) which is a mechanical/chemical dry process for converting cellulose material into sugar for use in the biofuels industry. It can convert any cellulosic material like grasses, wood, paper, farm waste, yard waste, forestry products, energy crops like hemp or King Grass, and the cellulosic portion of municipal solid waste into sugars and lignin, and subsequently into biofuels and bioplastics. This system produces sugar and chemically unmodified lignin among other by-products. The sugar can then be further converted into biofuels and the lignin into bioplastics.
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