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.
* 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 Medicine Man Technologies's Sloan Ratio %
For the Drug Manufacturers - Specialty & Generic subindustry, Medicine Man Technologies'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.
Medicine Man Technologies's Sloan Ratio % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Medicine Man Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Medicine Man Technologies's Sloan Ratio % falls into.
Medicine Man Technologies 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.
Medicine Man Technologies's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Medicine Man Technologies's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -6.608 (Jun. 2023 ) + -0.322 (Sep. 2023 ) + -29.365 (Dec. 2023 ) + -16.053 (Mar. 2024 ) = $-52.3 Mil.
Medicine Man Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 2.683 (Jun. 2023 ) + 6.946 (Sep. 2023 ) + 3.452 (Dec. 2023 ) + -3.7 (Mar. 2024 ) = $9.4 Mil.
Medicine Man Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -17.625 (Jun. 2023 ) + -4.741 (Sep. 2023 ) + -1.169 (Dec. 2023 ) + -1.532 (Mar. 2024 ) = $-25.1 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.
Medicine Man Technologies (OTCPK:SHWZ) 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, Medicine Man Technologies has a Sloan Ratio of -10.58%, indicating there is a warning stage of accrual build up.
Medicine Man Technologies Sloan Ratio % Related Terms
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Medicine Man Technologies (Medicine Man Technologies) Business Description
Medicine Man Technologies Inc is engaged in providing general consulting services in the cannabis industry. The company also provide seminar which includes giving guidance and tips on industry opportunities, medical and recreational market trends, cultivation methodologies and technology, extraction technology, dispensary operation, security requirements. The company's operating segment includes- Retail, consisting of retail locations for sale of cannabis products; Wholesale, consisting of manufacturing, cultivation and sale of both wholesale cannabis and non-cannabis products; Other, consisting of all other income and expenses. It generates maximum revenue from the Retail segment. The company is now operating under its new trade name, Schwazze.
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