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.
Brasil Pharma's Sloan Ratio for the quarter that ended in Mar. 2019 was 0.00%.
As of Mar. 2019, Brasil Pharma has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Brasil Pharma Sloan Ratio % Historical Data
The historical data trend for Brasil Pharma'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 Brasil Pharma's Sloan Ratio %
For the Pharmaceutical Retailers subindustry, Brasil Pharma'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.
Brasil Pharma's Sloan Ratio % Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Brasil Pharma's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Brasil Pharma's Sloan Ratio % falls into.
Brasil Pharma 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.
Brasil Pharma's Sloan Ratio for the fiscal year that ended in Dec. 2018 is calculated as
Brasil Pharma's Net Income for the trailing twelve months (TTM) ended in Mar. 2019 was -69.526 (Jun. 2018 ) + -12.369 (Sep. 2018 ) + 1282.298 (Dec. 2018 ) + -23.911 (Mar. 2019 ) = R$1,176.49 Mil.
Brasil Pharma's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2019 was -16.433 (Jun. 2018 ) + -20.404 (Sep. 2018 ) + -12.047 (Dec. 2018 ) + -14.264 (Mar. 2019 ) = R$-63.15 Mil.
Brasil Pharma's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2019 was 0.001 (Jun. 2018 ) + 0.001 (Sep. 2018 ) + -0.002 (Dec. 2018 ) + 0 (Mar. 2019 ) = R$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.
Brasil Pharma (BSP:BPHA3) 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 Mar. 2019, Brasil Pharma has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Brasil Pharma Sloan Ratio % Related Terms
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Brasil Pharma SA is a Brazil-based company primarily engaged in the pharmaceutical retail sector. The company operates in the retail sale of medicines, perfumes, cosmetics, skincare and beauty products and toiletries. The operating segments of the company are Retail sector and Service sector, of which majority of the revenue is generated from the Retail segment. The group has its presence in all the regions of Brazil through its own stores and a franchise network. The owned stores of the company are operated under the Big Ben, Guararapes, District Pharmacy Rosary, Sant'Ana and Mais Economica brands. The company's franchises operate under the Farmais brand.
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