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.
Amedisys's Sloan Ratio for the quarter that ended in Mar. 2024 was -5.33%.
As of Mar. 2024, Amedisys has a Sloan Ratio of -5.33%, indicating the company is in the safe zone and there is no funny business with accruals.
Amedisys Sloan Ratio % Historical Data
The historical data trend for Amedisys'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 Amedisys's Sloan Ratio %
For the Medical Care Facilities subindustry, Amedisys'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.
Amedisys's Sloan Ratio % Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Amedisys's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Amedisys's Sloan Ratio % falls into.
Amedisys 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.
Amedisys's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Amedisys's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -80.275 (Jun. 2023 ) + 25.96 (Sep. 2023 ) + 19.322 (Dec. 2023 ) + 14.4 (Mar. 2024 ) = $-21 Mil.
Amedisys's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 60.759 (Jun. 2023 ) + -9.843 (Sep. 2023 ) + 60.311 (Dec. 2023 ) + -6.541 (Mar. 2024 ) = $105 Mil.
Amedisys's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -7.745 (Jun. 2023 ) + -1.048 (Sep. 2023 ) + -2.039 (Dec. 2023 ) + -3.068 (Mar. 2024 ) = $-14 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.
Amedisys (NAS:AMED) 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, Amedisys has a Sloan Ratio of -5.33%, indicating the company is in the safe zone and there is no funny business with accruals.
Amedisys Sloan Ratio % Related Terms
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Amedisys Inc is a healthcare services company in the United States. The company brings healthcare to the home through the provision of home healthcare services, hospice services, high acuity care segment, and personal care services. The Home Health Segment provides skilled nurses, therapists, and aids to patients' homes throughout the United States, Hospice segment operates many centers designed to provide comfort and support for terminally ill patients, Personal Care Segment provides individuals with assistance in their daily living activities and High acuity care segment can deliver the essential elements of inpatient hospital, SNF care, and palliative care to patients in their homes. A majority of the company's revenue is derived from the Home Health segment.
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