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.
The Good Shroom Co's Sloan Ratio for the quarter that ended in Jan. 2024 was 0.00%.
As of Jan. 2024, The Good Shroom Co has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
The Good Shroom Co Sloan Ratio % Historical Data
The historical data trend for The Good Shroom Co'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 The Good Shroom Co's Sloan Ratio %
For the Beverages - Non-Alcoholic subindustry, The Good Shroom Co'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.
The Good Shroom Co's Sloan Ratio % Distribution in the Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, The Good Shroom Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where The Good Shroom Co's Sloan Ratio % falls into.
The Good Shroom Co 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.
The Good Shroom Co's Sloan Ratio for the fiscal year that ended in Jul. 2023 is calculated as
The Good Shroom Co's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was 0.01 (Apr. 2023 ) + -0.149 (Jul. 2023 ) + 0.067 (Oct. 2023 ) + 0.042 (Jan. 2024 ) = $-0.03 Mil.
The Good Shroom Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was -0.136 (Apr. 2023 ) + 0.075 (Jul. 2023 ) + 0.03 (Oct. 2023 ) + -0.042 (Jan. 2024 ) = $-0.07 Mil.
The Good Shroom Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was 0 (Apr. 2023 ) + 0 (Jul. 2023 ) + 0 (Oct. 2023 ) + 0 (Jan. 2024 ) = $0.00 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.
The Good Shroom Co (OTCPK:TGSHF) 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 Jan. 2024, The Good Shroom Co has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
The Good Shroom Co Sloan Ratio % Related Terms
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The Good Shroom Co (The Good Shroom Co) Business Description
The Good Shroom Co Inc operates a portfolio of brands that include traditional cannabis and beverage products. The company exists to promote the use of mushrooms through its brands; The Teo Nan brand is a functional mushroom beverage range serving the American and Canadian wellness market via DTC and retail; The Nordique Royale is a premium quality hash; and The Velada brand is a range of CBD-infused functional mushroom beverages serving the Canadian legal cannabis market.
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