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.
As of Dec. 2023, Aspen Pharmacare Holdings has a Sloan Ratio of 4.74%, indicating the company is in the safe zone and there is no funny business with accruals.
Aspen Pharmacare Holdings 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 Aspen Pharmacare Holdings's Sloan Ratio %
For the Drug Manufacturers - Specialty & Generic subindustry, Aspen Pharmacare Holdings'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.
Aspen Pharmacare Holdings's Sloan Ratio % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Aspen Pharmacare Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Aspen Pharmacare Holdings's Sloan Ratio % falls into.
Aspen Pharmacare Holdings 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.
Aspen Pharmacare Holdings's Sloan Ratio for the fiscal year that ended in Jun. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Aspen Pharmacare Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 136.251 (Jun. 2023 ) + 124.19 (Dec. 2023 ) = $260 Mil.
Aspen Pharmacare Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 203.416 (Jun. 2023 ) + 131.918 (Dec. 2023 ) = $335 Mil.
Aspen Pharmacare Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -97.787 (Jun. 2023 ) + -331.136 (Dec. 2023 ) = $-429 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.
Aspen Pharmacare Holdings (OTCPK:APNHF) 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, Aspen Pharmacare Holdings has a Sloan Ratio of 4.74%, indicating the company is in the safe zone and there is no funny business with accruals.
Aspen Pharmacare Holdings Sloan Ratio % Related Terms
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Aspen Pharmacare Holdings (Aspen Pharmacare Holdings) Business Description
Aspen Pharmacare Holdings Ltd is a specialty pharmaceutical company with a commercial footprint covering more than 50 countries and complex manufacturing capabilities in both API and finished dose form. The company focuses on a broad range of post-patent, branded medicines and domestic brands spanning many therapeutic areas. The company has four business segments such as Active Pharmaceutical Ingredients (API) - this segment includes the API Chemicals business and non-heparin biochemical API business, Heparin - this segment includes the full value chain contribution from all heparin containing products including API and Finished Dose. Form (FDF) sales Key products include the Fraxiparine and MonoEmbolex heparin containing FDF products and FDF Steriles segment.
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