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.
Dynacq Healthcare's Sloan Ratio for the quarter that ended in Nov. 2015 was -10.84%.
As of Nov. 2015, Dynacq Healthcare has a Sloan Ratio of -10.84%, indicating there is a warning stage of accrual build up.
Dynacq Healthcare Sloan Ratio % Historical Data
The historical data trend for Dynacq Healthcare'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 Dynacq Healthcare's Sloan Ratio %
For the Medical Care Facilities subindustry, Dynacq Healthcare'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.
Dynacq Healthcare's Sloan Ratio % Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Dynacq Healthcare's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Dynacq Healthcare's Sloan Ratio % falls into.
Dynacq Healthcare 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.
Dynacq Healthcare's Sloan Ratio for the fiscal year that ended in Aug. 2015 is calculated as
Dynacq Healthcare's Net Income for the trailing twelve months (TTM) ended in Nov. 2015 was -1.72 (Feb. 2015 ) + 0.017 (May. 2015 ) + -1.135 (Aug. 2015 ) + -2.206 (Nov. 2015 ) = $-5.04 Mil.
Dynacq Healthcare's Cash Flow from Operations for the trailing twelve months (TTM) ended in Nov. 2015 was -1.765 (Feb. 2015 ) + -2.531 (May. 2015 ) + -1.697 (Aug. 2015 ) + -1.019 (Nov. 2015 ) = $-7.01 Mil.
Dynacq Healthcare's Cash Flow from Investing for the trailing twelve months (TTM) ended in Nov. 2015 was -0.193 (Feb. 2015 ) + 5.958 (May. 2015 ) + -0.031 (Aug. 2015 ) + -0.013 (Nov. 2015 ) = $5.72 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.
Dynacq Healthcare (GREY:DYII) 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 Nov. 2015, Dynacq Healthcare has a Sloan Ratio of -10.84%, indicating there is a warning stage of accrual build up.
Dynacq Healthcare Sloan Ratio % Related Terms
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Dynacq Healthcare (Dynacq Healthcare) Business Description
Dynacq Healthcare Inc is a holding company. Through its subsidiaries develops and manages general acute care hospitals that principally provide specialized surgeries. The company specializes in a small number of higher-margin specialties and patient care services such as orthopedics, neurosurgery, and general surgery. In addition, the group invests in debt and equity securities. Geographically, the activities of the group are carried out through the region of US.
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