Adrad Holdings (ASX:AHL) Sloan Ratio % : -1.34% (As of Dec. 2024)

Adrad Holdings Sloan Ratio % Chart

Competitive Comparison of Adrad Holdings's Sloan Ratio %

For the Specialty Industrial Machinery subindustry, Adrad 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.

Adrad Holdings's Sloan Ratio % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Adrad Holdings's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Adrad Holdings's Sloan Ratio % falls into.

Adrad 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.

Adrad Holdings's Sloan Ratio for the fiscal year that ended in Jun. 2024 is calculated as

Adrad Holdings's Sloan Ratio for the quarter that ended in Dec. 2024 is calculated as

For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data. Adrad Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was 2.887 (Jun. 2024 ) + 2.849 (Dec. 2024 ) = A$5.7 Mil.
Adrad Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was 3.583 (Jun. 2024 ) + 10.085 (Dec. 2024 ) = A$13.7 Mil.
Adrad Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -2.455 (Jun. 2024 ) + -2.929 (Dec. 2024 ) = A$-5.4 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.

Adrad Holdings  (ASX:AHL) 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.

According to How to Beat the Market with the Sloan Ratio:

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. 2024, Adrad Holdings has a Sloan Ratio of -1.34%, indicating the company is in the safe zone and there is no funny business with accruals.

Adrad Holdings Sloan Ratio % Related Terms

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Adrad Holdings Business Description