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.
Visionflex Group's Sloan Ratio for the quarter that ended in Jun. 2024 was -26.16%.
Warning Sign:
When sloan ratio (-26.16)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Jun. 2024, Visionflex Group has a Sloan Ratio of -26.16%, indicating earnings are more likely to be made up of accruals.
Visionflex Group Sloan Ratio % Historical Data
The historical data trend for Visionflex 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.
Competitive Comparison of Visionflex Group's Sloan Ratio %
For the Health Information Services subindustry, Visionflex 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.
Visionflex Group's Sloan Ratio % Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Visionflex Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Visionflex Group's Sloan Ratio % falls into.
Visionflex 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.
Visionflex Group's Sloan Ratio for the fiscal year that ended in Jun. 2024 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Visionflex Group's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was -0.573 (Dec. 2023 ) + -1.261 (Jun. 2024 ) = A$-1.83 Mil.
Visionflex Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was -0.177 (Dec. 2023 ) + -1.18 (Jun. 2024 ) = A$-1.36 Mil.
Visionflex Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was 0.295 (Dec. 2023 ) + -0.018 (Jun. 2024 ) = A$0.28 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.
Visionflex Group (ASX:VFX) 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 Jun. 2024, Visionflex Group has a Sloan Ratio of -26.16%, indicating earnings are more likely to be made up of accruals.
Visionflex Group Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Visionflex Group's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Visionflex Group Ltd Formerly 1st Group Ltd is an online health portal group. The company is engaged in the provision of health care and corporate online search and appointment booking services. The firm derives revenue from Subscription fees, Usage fees, Advertising, and Setup and customization out of which Subscription fees account for the majority of its revenue. The group has acquired multiple companies to run the business smoothly. The group has two operating segments, 1st Group and Visionflex which are both located in Australia. The company generates the majority of its revenue from 1st Group segment, which is engaged in the provision of healthcare and corporate online search and appointment booking services.
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