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.
Neptune Wellness Solutions's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.00%.
Warning Sign:
When sloan ratio (-110.76)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2023, Neptune Wellness Solutions has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Neptune Wellness Solutions Sloan Ratio % Historical Data
The historical data trend for Neptune Wellness Solutions'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 Neptune Wellness Solutions's Sloan Ratio %
For the Drug Manufacturers - Specialty & Generic subindustry, Neptune Wellness 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.
Neptune Wellness Solutions's Sloan Ratio % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Neptune Wellness Solutions's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Neptune Wellness Solutions's Sloan Ratio % falls into.
Neptune Wellness 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.
Neptune Wellness Solutions's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
Neptune Wellness Solutions's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -26.566 (Mar. 2023 ) + -8.314 (Jun. 2023 ) + -0.89 (Sep. 2023 ) + -17.749 (Dec. 2023 ) = $-53.52 Mil.
Neptune Wellness Solutions's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -7.896 (Mar. 2023 ) + -5.298 (Jun. 2023 ) + 0.76 (Sep. 2023 ) + -3.027 (Dec. 2023 ) = $-15.46 Mil.
Neptune Wellness Solutions's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.329 (Mar. 2023 ) + -0.004 (Jun. 2023 ) + -0.075 (Sep. 2023 ) + 0 (Dec. 2023 ) = $-0.41 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.
Neptune Wellness Solutions (OTCPK:NEPTF) 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, Neptune Wellness Solutions has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Neptune Wellness Solutions Sloan Ratio % Related Terms
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Neptune Wellness Solutions (Neptune Wellness Solutions) Business Description
Neptune Wellness Solutions Inc is a consumer-packaged goods company that aims to innovate health and wellness products. It focuses on developing a portfolio of high-quality, affordable consumer products that align with the latest market trends for natural, sustainable, plant-based and purpose-driven lifestyle brands. The company's products are available in more than 27,000 retail locations and include well-known organic food and beverage brands such as Sprout Organics, Nosh, and Nurturme, as well as nutraceuticals brands like Biodroga and Forest Remedies. With its efficient and adaptable manufacturing and supply chain infrastructure, the company can quickly respond to consumer demand, and introduce new products through retail partners and e-commerce channels.
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