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.
When sloan ratio (-28.81)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Sep. 2024, AgriFORCE Growing Systems has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
AgriFORCE Growing Systems Sloan Ratio % Historical Data
* 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 AgriFORCE Growing Systems's Sloan Ratio %
For the Farm Products subindustry, AgriFORCE Growing Systems'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.
AgriFORCE Growing Systems's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, AgriFORCE Growing Systems's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where AgriFORCE Growing Systems's Sloan Ratio % falls into.
AgriFORCE Growing Systems 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.
AgriFORCE Growing Systems's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
AgriFORCE Growing Systems's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was -3.993 (Dec. 2023 ) + -3.328 (Mar. 2024 ) + -4.232 (Jun. 2024 ) + -5.847 (Sep. 2024 ) = $-17.40 Mil.
AgriFORCE Growing Systems's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was -1.067 (Dec. 2023 ) + -1.309 (Mar. 2024 ) + -0.919 (Jun. 2024 ) + -1.201 (Sep. 2024 ) = $-4.50 Mil.
AgriFORCE Growing Systems's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was 0 (Dec. 2023 ) + 0 (Mar. 2024 ) + 0 (Jun. 2024 ) + 0 (Sep. 2024 ) = $0.00 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.
AgriFORCE Growing Systems (NAS:AGRI) 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 Sep. 2024, AgriFORCE Growing Systems has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
AgriFORCE Growing Systems Sloan Ratio % Related Terms
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AgriFORCE Growing Systems Ltd is an Ag-Tech company with a primary focus on developing and utilizing its intellectual property assets for improvements dedicated to the agricultural industry. The company believes that this goal is best achieved by using its proprietary IP for solutions in the agricultural industry as well as seeking the development of new IP to both enhance the technology which it has already retained in-house as well as development of new technologies which can increase its footprint in the Ag-Tech space. Its AgriFORCE Brands division is focused on the development and commercialization of plant-based ingredients and products that deliver more nutritious food. It will market and commercialize ingredient supplies, like its Awakened Flour and Awakened Grains.
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