Egyptian International Pharmaceutical Investments (CAI:PHAR) Sloan Ratio % : 30.69% (As of Dec. 2023)

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What is Egyptian International Pharmaceutical Investments 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.

Egyptian International Pharmaceutical Investments's Sloan Ratio for the quarter that ended in Dec. 2023 was 30.69%.

Warning Sign:

When sloan ratio (30.69)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.

As of Dec. 2023, Egyptian International Pharmaceutical Investments has a Sloan Ratio of 30.69%, indicating earnings are more likely to be made up of accruals.

Egyptian International Pharmaceutical Investments Sloan Ratio % Historical Data

The historical data trend for Egyptian International Pharmaceutical Investments'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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Egyptian International Pharmaceutical Investments Sloan Ratio % Chart

Egyptian International Pharmaceutical Investments Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Sloan Ratio %

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15.21

10.51

9.09

21.71

30.69

Egyptian International Pharmaceutical Investments Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Sloan Ratio %	Get a 7-Day Free Trial															21.71	24.19	35.04	34.65	30.69

Competitive Comparison of Egyptian International Pharmaceutical Investments's Sloan Ratio %

For the Drug Manufacturers - Specialty & Generic subindustry, Egyptian International Pharmaceutical Investments'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.

Egyptian International Pharmaceutical Investments's Sloan Ratio % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Egyptian International Pharmaceutical Investments's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Egyptian International Pharmaceutical Investments's Sloan Ratio % falls into.

Egyptian International Pharmaceutical Investments 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.

Egyptian International Pharmaceutical Investments'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 )
	=	(823.306	-	90.354
	-	-2329.64)	/	9978.783
	=	30.69%

Egyptian International Pharmaceutical Investments's Sloan Ratio for the quarter that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Dec. 2023 )
	=	(823.306	-	90.355
	-	-2329.64)	/	9978.783
	=	30.69%

Egyptian International Pharmaceutical Investments's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 188.256 (Mar. 2023 ) + 275.154 (Jun. 2023 ) + 105.296 (Sep. 2023 ) + 254.6 (Dec. 2023 ) = E£823 Mil.
Egyptian International Pharmaceutical Investments's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -14.343 (Mar. 2023 ) + -61.165 (Jun. 2023 ) + -24.096 (Sep. 2023 ) + 189.959 (Dec. 2023 ) = E£90 Mil.
Egyptian International Pharmaceutical Investments's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -469.242 (Mar. 2023 ) + -1054.392 (Jun. 2023 ) + -600.763 (Sep. 2023 ) + -205.243 (Dec. 2023 ) = E£-2,330 Mil.

Egyptian International Pharmaceutical Investments (CAI:PHAR) 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 Dec. 2023, Egyptian International Pharmaceutical Investments has a Sloan Ratio of 30.69%, indicating earnings are more likely to be made up of accruals.

Egyptian International Pharmaceutical Investments Sloan Ratio % Related Terms

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Egyptian International Pharmaceutical Investments (CAI:PHAR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Egyptian International Pharmaceutical Investments (CAI:PHAR) » Definitions » Sloan Ratio %

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Traded in Other Exchanges

N/A

Address

1st Industrial Zone B1, EIPICO, 10th of Ramadan, EGY

Website

http://www.eipico.com.eg

Egyptian International Pharmaceutical Investments is an Egypt based company pharmaceutical generic drugs. It holds license agreements with a group of pharmaceutical companies to produce their products locally and replace the imported ones. The company produces dosage forms, Spansule capsules, non-traditional dosage forms including soft gelatin capsules, lyophilized products, gels, sprayers and effervescent tablets. It exports its products to Arab countries, African, Asian and East European Countries. Its products portfolio includes antibiotics, anesthetics, analgesics, antihypertensives, cholesterol-lowering medications, ophthalmic products, blood substitutes and restoratives, dermatological drugs and vitamins. Some of its products are Vasotec, Co-vasotec, Flumox, and Cefotax.