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.
Pediatrix Medical Group's Sloan Ratio for the quarter that ended in Dec. 2023 was -6.74%.
As of Dec. 2023, Pediatrix Medical Group has a Sloan Ratio of -6.74%, indicating the company is in the safe zone and there is no funny business with accruals.
Pediatrix Medical Group Sloan Ratio % Historical Data
The historical data trend for Pediatrix Medical Group'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.
For the Medical Care Facilities subindustry, Pediatrix Medical Group'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.
Pediatrix Medical Group Sloan Ratio % Distribution
For the Healthcare Providers & Services industry and Healthcare sector, Pediatrix Medical Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Pediatrix Medical Group's Sloan Ratio % falls into.
Pediatrix Medical Group 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.
Pediatrix Medical Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Pediatrix Medical Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 14.206 (Mar. 2023 ) + 28.282 (Jun. 2023 ) + 21.391 (Sep. 2023 ) + -124.287 (Dec. 2023 ) = $-60 Mil.
Pediatrix Medical Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -100.917 (Mar. 2023 ) + 89.054 (Jun. 2023 ) + 79.938 (Sep. 2023 ) + 69.25 (Dec. 2023 ) = $137 Mil.
Pediatrix Medical Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -11.35 (Mar. 2023 ) + -10.398 (Jun. 2023 ) + -14.004 (Sep. 2023 ) + -12.424 (Dec. 2023 ) = $-48 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.
Pediatrix Medical Group (NYSE:MD) 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 Dec. 2023, Pediatrix Medical Group has a Sloan Ratio of -6.74%, indicating the company is in the safe zone and there is no funny business with accruals.
Pediatrix Medical Group Sloan Ratio % Related Terms
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Pediatrix Medical Group (Pediatrix Medical Group) Business Description
Pediatrix Medical Group Inc provides physician services to hospitals, intensive care units, and other medical units. The services provided by the company include maternal care for expectant mothers, intensive care for premature babies, cardiology care for infants suffering from heart defects, and anesthesia care during surgeries, among others. The company operates only under one segment, which is physician services. The company generates roughly half of its revenue from the women's and children's services provided, and also roughly half of the company's total revenue is earned in the United States.
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