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.
Indoor Harvest's Sloan Ratio for the quarter that ended in Sep. 2023 was 0.00%.
Warning Sign:
When sloan ratio (-376.68)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Sep. 2023, Indoor Harvest has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Indoor Harvest Sloan Ratio % Historical Data
The historical data trend for Indoor Harvest'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 Indoor Harvest's Sloan Ratio %
For the Drug Manufacturers - Specialty & Generic subindustry, Indoor Harvest'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.
Indoor Harvest's Sloan Ratio % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Indoor Harvest's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Indoor Harvest's Sloan Ratio % falls into.
Indoor Harvest 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.
Indoor Harvest's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
Indoor Harvest's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was -0.44 (Dec. 2022 ) + -0.374 (Mar. 2023 ) + -0.381 (Jun. 2023 ) + -0.372 (Sep. 2023 ) = $-1.57 Mil.
Indoor Harvest's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was -0.243 (Dec. 2022 ) + -0.197 (Mar. 2023 ) + 0.033 (Jun. 2023 ) + -0.789 (Sep. 2023 ) = $-1.20 Mil.
Indoor Harvest's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was 0 (Dec. 2022 ) + -0.143 (Mar. 2023 ) + -0.251 (Jun. 2023 ) + 0.123 (Sep. 2023 ) = $-0.27 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.
Indoor Harvest (OTCPK:INQD) 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 Sep. 2023, Indoor Harvest has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Indoor Harvest Sloan Ratio % Related Terms
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Indoor Harvest (Indoor Harvest) Business Description
Indoor Harvest Corp develops, process, and provide cannabis medicines. The company provides cannabis industry production platforms for building integrated agriculture (BIA) production. It focuses on Genetics, Tissue Culture, Controlled Environment Ag technologies, including high-pressure Aeroponic Cultivation, Micropropagation, and Cultivation operations. It focuses on an integrated consolidation platform offering for cannabis industry companies focused on hemp, other hemp-related products, CBD, CPG, and ancillary business verticals.
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