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.
RM2 International's Sloan Ratio for the quarter that ended in Jun. 2020 was 0.00%.
As of Jun. 2020, RM2 International has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
RM2 International Sloan Ratio % Historical Data
The historical data trend for RM2 International'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 RM2 International's Sloan Ratio %
For the Metal Fabrication subindustry, RM2 International'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.
RM2 International's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, RM2 International's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where RM2 International's Sloan Ratio % falls into.
RM2 International 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.
RM2 International's Sloan Ratio for the fiscal year that ended in Jun. 2020 is calculated as
RM2 International's Net Income for the trailing twelve months (TTM) ended in Jun. 2020 was -3.542 (Dec. 2018 ) + -6.181 (Mar. 2019 ) + -12.595 (Jun. 2019 ) + 0 (Jun. 2020 ) = $-22.32 Mil.
RM2 International's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2020 was 1.047 (Dec. 2018 ) + -0.937 (Mar. 2019 ) + -4.255 (Jun. 2019 ) + 0 (Jun. 2020 ) = $-4.15 Mil.
RM2 International's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2020 was -0.716 (Dec. 2018 ) + -0.414 (Mar. 2019 ) + -0.744 (Jun. 2019 ) + 0 (Jun. 2020 ) = $-1.87 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.
RM2 International (OTCPK:RMTO) 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. 2020, RM2 International has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
RM2 International Sloan Ratio % Related Terms
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RM2 International (RM2 International) Business Description
RM2 International Inc leases robust composite pallets to replace wooden pallets, including smart Internet of Things (IoT) technologies, to improve logistics. In every BLOCKPal pallet, embedded IoT sensors capture location, temperature, shock & tilt, and movement. Sensor data is transmitted via a high-speed LTE-M network to RM2's secure cloud database. RM2 issues, retrieves, and sanitizes more than 1.5 million of its hygienic IoT pallets annually through a nationwide network of over 30 service facilities in a cost-effective, scalable, and environmentally sustainable pallet pooling system.
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