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.
Defense Metals's Sloan Ratio for the quarter that ended in Sep. 2024 was 0.00%.
As of Sep. 2024, Defense Metals has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Defense Metals Sloan Ratio % Historical Data
The historical data trend for Defense Metals'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 Defense Metals's Sloan Ratio %
For the Other Industrial Metals & Mining subindustry, Defense Metals'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.
Defense Metals's Sloan Ratio % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Defense Metals's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Defense Metals's Sloan Ratio % falls into.
Defense Metals 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.
Defense Metals's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
Defense Metals's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was -0.527 (Mar. 2023 ) + -0.477 (Sep. 2023 ) + -0.932 (Dec. 2023 ) + -0.777 (Sep. 2024 ) = $-2.71 Mil.
Defense Metals's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was -0.326 (Mar. 2023 ) + 0 (Sep. 2023 ) + -0.555 (Dec. 2023 ) + 0 (Sep. 2024 ) = $-0.88 Mil.
Defense Metals's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -1.153 (Mar. 2023 ) + 0 (Sep. 2023 ) + -2.695 (Dec. 2023 ) + 0 (Sep. 2024 ) = $-3.85 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.
Defense Metals (OTCPK:DFMTF) 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 Sep. 2024, Defense Metals has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Defense Metals Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Defense Metals's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Defense Metals Corp is a mineral exploration company focused on metals and elements commonly used in the EV market, military, national security, and "GREEN" energy technologies, such as high-strength alloys and rare earth magnets. operates in one business segment, being the exploration, development, and evaluation of the Wicheeda Project in British Columbia, Canada. It holds a portfolio of one hundred percent of the one thousand seven hundred eight hectares of Rare Earth Wicheeda Property in British Columbia, Canada. The mineral deposits are commonly used in the electric power market, defense industry, national security sector, and in the production of green energy technologies.
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