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.
RocketFuel Blockchain's Sloan Ratio for the quarter that ended in Jun. 2023 was 0.00%.
Warning Sign:
When sloan ratio (-48.36)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Jun. 2023, RocketFuel Blockchain has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
RocketFuel Blockchain Sloan Ratio % Historical Data
The historical data trend for RocketFuel Blockchain'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 RocketFuel Blockchain's Sloan Ratio %
For the Software - Infrastructure subindustry, RocketFuel Blockchain'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.
RocketFuel Blockchain's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, RocketFuel Blockchain's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where RocketFuel Blockchain's Sloan Ratio % falls into.
RocketFuel Blockchain 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.
RocketFuel Blockchain's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
RocketFuel Blockchain's Net Income for the trailing twelve months (TTM) ended in Jun. 2023 was -1.242 (Sep. 2022 ) + -1.336 (Dec. 2022 ) + -0.251 (Mar. 2023 ) + -0.782 (Jun. 2023 ) = $-3.61 Mil.
RocketFuel Blockchain's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2023 was -0.844 (Sep. 2022 ) + 1.334 (Dec. 2022 ) + -1.999 (Mar. 2023 ) + -0.417 (Jun. 2023 ) = $-1.93 Mil.
RocketFuel Blockchain's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2023 was -0.213 (Sep. 2022 ) + -0.881 (Dec. 2022 ) + 0.555 (Mar. 2023 ) + 0 (Jun. 2023 ) = $-0.54 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.
RocketFuel Blockchain (OTCPK:RKFL) 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. 2023, RocketFuel Blockchain has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
RocketFuel Blockchain Sloan Ratio % Related Terms
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RocketFuel Blockchain (RocketFuel Blockchain) Business Description
RocketFuel Blockchain Inc is a development-stage company that is in the process of developing check-out systems based upon blockchain technology and designed to increase speed, security, and ease of use. The company's blockchain-based check-out solution is being designed to include a single-click functionality to invoke payment conveyance with integrated consumer shipping address data. The provide payment solutions to businesses enabling them to make and receive payments with cryptocurrencies and via bank transfers, including ACH.
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