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.
Pennant Group's Sloan Ratio for the quarter that ended in Mar. 2024 was 7.49%.
As of Mar. 2024, Pennant Group has a Sloan Ratio of 7.49%, indicating the company is in the safe zone and there is no funny business with accruals.
Pennant Group Sloan Ratio % Historical Data
The historical data trend for Pennant Group'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 Pennant Group's Sloan Ratio %
For the Medical Care Facilities subindustry, Pennant Group'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.
Pennant Group's Sloan Ratio % Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Pennant Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Pennant Group's Sloan Ratio % falls into.
Pennant Group 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.
Pennant Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Pennant Group's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 2.797 (Jun. 2023 ) + 4.383 (Sep. 2023 ) + 4.349 (Dec. 2023 ) + 4.906 (Mar. 2024 ) = $16.4 Mil.
Pennant Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 6.537 (Jun. 2023 ) + 12.377 (Sep. 2023 ) + 5.18 (Dec. 2023 ) + 0.545 (Mar. 2024 ) = $24.6 Mil.
Pennant Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -8.9 (Jun. 2023 ) + -6.35 (Sep. 2023 ) + -12.646 (Dec. 2023 ) + -23.636 (Mar. 2024 ) = $-51.5 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.
Pennant Group (NAS:PNTG) 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, Pennant Group has a Sloan Ratio of 7.49%, indicating the company is in the safe zone and there is no funny business with accruals.
Pennant Group Sloan Ratio % Related Terms
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Pennant Group (Pennant Group) Business Description
Pennant Group Inc is engaged in providing healthcare services to patients of all ages, including the growing senior population, in the United States. It operates in multiple lines of business including home health and hospice services which includes our home health, hospice, and home care businesses and Senior living which includes the company's assisted living, independent living, and memory care communities across Arizona, California, Colorado, Idaho, Iowa, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin, and Wyoming. The majority of the revenue is generated from the Home Health and Hospice Services segment.
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