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.
Rochester Resources's Sloan Ratio for the quarter that ended in Feb. 2024 was -107.78%.
Warning Sign:
When sloan ratio (-98.89)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Feb. 2024, Rochester Resources has a Sloan Ratio of -107.78%, indicating earnings are more likely to be made up of accruals.
Rochester Resources Sloan Ratio % Historical Data
The historical data trend for Rochester Resources'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 Rochester Resources's Sloan Ratio %
For the Gold subindustry, Rochester Resources'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.
Rochester Resources's Sloan Ratio % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Rochester Resources's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Rochester Resources's Sloan Ratio % falls into.
Rochester Resources 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.
Rochester Resources's Sloan Ratio for the fiscal year that ended in May. 2023 is calculated as
Rochester Resources's Net Income for the trailing twelve months (TTM) ended in Feb. 2024 was -1.995 (May. 2023 ) + -0.45 (Aug. 2023 ) + -1.15 (Nov. 2023 ) + -1.945 (Feb. 2024 ) = C$-5.54 Mil.
Rochester Resources's Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2024 was 0.039 (May. 2023 ) + -0.024 (Aug. 2023 ) + -2.11 (Nov. 2023 ) + 2.645 (Feb. 2024 ) = C$0.55 Mil.
Rochester Resources's Cash Flow from Investing for the trailing twelve months (TTM) ended in Feb. 2024 was 0.16 (May. 2023 ) + -0.079 (Aug. 2023 ) + -0.066 (Nov. 2023 ) + -0.105 (Feb. 2024 ) = C$-0.09 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.
Rochester Resources (TSXV:RCT) 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, Rochester Resources has a Sloan Ratio of -107.78%, indicating earnings are more likely to be made up of accruals.
Rochester Resources Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Rochester Resources's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Rochester Resources (TSXV:RCT) Business Description
Rochester Resources Ltd is a Canada-based mineral exploration and development company. Principally, the company is engaged in the business of acquisition, exploration, and development of exploration and evaluation of assets in Mexico. It holds 100% interest in the Mina real and San Francisco properties. The firm operates in one segment being the acquisition, exploration and development of exploration and evaluation assets Its mineral operations are located in Mexico and its corporate assets are located in Canada. It derives revenue from mineral exploration activity in Mexico.
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