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.
Core Scientific's Sloan Ratio for the quarter that ended in Mar. 2024 was -8.56%.
Warning Sign:
When sloan ratio (-43.33)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Mar. 2024, Core Scientific has a Sloan Ratio of -8.56%, indicating the company is in the safe zone and there is no funny business with accruals.
Core Scientific Sloan Ratio % Historical Data
The historical data trend for Core Scientific'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 Core Scientific's Sloan Ratio %
For the Software - Infrastructure subindustry, Core Scientific'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.
Core Scientific's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, Core Scientific's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Core Scientific's Sloan Ratio % falls into.
Core Scientific 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.
Core Scientific's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Core Scientific's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -9.26 (Jun. 2023 ) + -41.146 (Sep. 2023 ) + -195.693 (Dec. 2023 ) + 210.691 (Mar. 2024 ) = $-35.4 Mil.
Core Scientific's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 18.035 (Jun. 2023 ) + 5.434 (Sep. 2023 ) + 21.703 (Dec. 2023 ) + 22.174 (Mar. 2024 ) = $67.3 Mil.
Core Scientific's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -0.619 (Jun. 2023 ) + -2.868 (Sep. 2023 ) + 2.36 (Dec. 2023 ) + -31.97 (Mar. 2024 ) = $-33.1 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.
Core Scientific (OTCPK:CORZQ) 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. 2024, Core Scientific has a Sloan Ratio of -8.56%, indicating the company is in the safe zone and there is no funny business with accruals.
Core Scientific Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Core Scientific's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Core Scientific (Core Scientific) Business Description
Core Scientific Inc is engaged in Blockchain and AI Infrastructure, Digital Asset Self-Mining, Premium Hosting, Blockchain Technology, and Artificial Intelligence related services. The business operates in two segments being; Equipment Sales and Hosting which consists of blockchain infrastructure, third-party hosting business and equipment sales to customers. Mining segment consists of digital asset mining for its account. The blockchain business generates revenue from the sale of consumption-based contracts and by providing hosting services. The digital asset mining segment earns revenue from operating a firm's owned computer equipment as part of a pool of users that process transactions conducted on one or more blockchain networks. In exchange, it receives digital currency assets.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
CORZQ has been successfully added to your 