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.
Ovivo's Sloan Ratio for the quarter that ended in Jun. 2016 was -5.70%.
As of Jun. 2016, Ovivo has a Sloan Ratio of -5.70%, indicating the company is in the safe zone and there is no funny business with accruals.
Ovivo Sloan Ratio % Historical Data
The historical data trend for Ovivo'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.
For the Pollution & Treatment Controls subindustry, Ovivo'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.
Ovivo's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Ovivo's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Ovivo's Sloan Ratio % falls into.
Ovivo 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.
Ovivo's Sloan Ratio for the fiscal year that ended in Mar. 2016 is calculated as
Ovivo's Net Income for the trailing twelve months (TTM) ended in Jun. 2016 was 0.859 (Sep. 2015 ) + 1.846 (Dec. 2015 ) + 0.99 (Mar. 2016 ) + 0.143 (Jun. 2016 ) = $3.8 Mil.
Ovivo's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2016 was 2.916 (Sep. 2015 ) + 1.046 (Dec. 2015 ) + 11.622 (Mar. 2016 ) + 1.432 (Jun. 2016 ) = $17.0 Mil.
Ovivo's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2016 was 2.567 (Sep. 2015 ) + 0.403 (Dec. 2015 ) + -0.24 (Mar. 2016 ) + -1.503 (Jun. 2016 ) = $1.2 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.
Ovivo (OTCPK:LVGAF) 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 Jun. 2016, Ovivo has a Sloan Ratio of -5.70%, indicating the company is in the safe zone and there is no funny business with accruals.
Ovivo Sloan Ratio % Related Terms
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Ovivo Inc was incorporated in May 15, 2007 in Canada. The Company is a provider of technological solutions used in water treatment well as in pulp and paper production. The Corporation operates in more than 25 countries. The Company and its subsidiaries conduct their activities in two main groups: Ovivo and GL&V Pulp and Paper. The Water Treatment Group (Ovivo) designs and markets treatment and recycling solutions and components for municipal and industrial wastewater as well as water used in various industrial processes. The Group also develops seawater desalination technologies and offers water intake screening solutions for power stations, refineries and water desalination facilities. With its technological portfolio, it is positioned to provide comprehensive solutions for the filtration, clarification, treatment and purification of water to be returned into the environment, re-used in various industrial processes or used for domestic purposes. The pulp and paper Group designs and markets equipment used in various stages of paper production, from pulp preparation to sheet formation and finishing. It also serves with rebuilding, upgrading and optimization services for existing equipment, as well as the sale of replacement parts. The Company operates in following geographic segment: United States, Canada, United Kingdom, Other - Europe and Russia, Asia and Asia-Pacific, Middle East and Africa & Latin America.
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