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.
As of Feb. 2024, Darelle Online Solutions has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Darelle Online Solutions Sloan Ratio % Historical Data
* 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 Darelle Online Solutions's Sloan Ratio %
For the Internet Content & Information subindustry, Darelle Online Solutions'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.
Darelle Online Solutions's Sloan Ratio % Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Darelle Online Solutions's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Darelle Online Solutions's Sloan Ratio % falls into.
Darelle Online Solutions 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.
Darelle Online Solutions's Sloan Ratio for the fiscal year that ended in Aug. 2023 is calculated as
Darelle Online Solutions's Net Income for the trailing twelve months (TTM) ended in Feb. 2024 was -0.03 (May. 2023 ) + -0.04 (Aug. 2023 ) + -0.022 (Nov. 2023 ) + -0.071 (Feb. 2024 ) = C$-0.16 Mil.
Darelle Online Solutions's Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2024 was 0.015 (May. 2023 ) + -0.01 (Aug. 2023 ) + 0.019 (Nov. 2023 ) + -0.036 (Feb. 2024 ) = C$-0.01 Mil.
Darelle Online Solutions's Cash Flow from Investing for the trailing twelve months (TTM) ended in Feb. 2024 was 0 (May. 2023 ) + 0 (Aug. 2023 ) + 0 (Nov. 2023 ) + 0 (Feb. 2024 ) = C$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.
Darelle Online Solutions (TSXV:DAR) 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 Feb. 2024, Darelle Online Solutions has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Darelle Online Solutions Sloan Ratio % Related Terms
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Darelle Online Solutions (TSXV:DAR) Business Description
Darelle Online Solutions Inc is a Canada-based company. The company is mainly engaged in providing an online raffle lottery system to charities. The online raffle program enables charitable and non-profit organizations to create, sell, deliver, and manage their raffle ticket and 50/50 draws completely online. In addition, the company is also engaged in the development of various software solutions that can be easily integrated with the customer's websites. The company's revenue consists of consideration from customers for set-up fees and processing fees.
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