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.
Fobi Ai's Sloan Ratio for the quarter that ended in Mar. 2024 was 0.00%.
Warning Sign:
When sloan ratio (-153.49)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Mar. 2024, Fobi Ai has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Fobi Ai Sloan Ratio % Historical Data
The historical data trend for Fobi Ai'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.
For the Software - Infrastructure subindustry, Fobi Ai'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.
Fobi Ai's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, Fobi Ai's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Fobi Ai's Sloan Ratio % falls into.
Fobi Ai 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.
Fobi Ai's Sloan Ratio for the fiscal year that ended in Jun. 2023 is calculated as
Fobi Ai's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -2.031 (Jun. 2023 ) + -1.568 (Sep. 2023 ) + -0.871 (Dec. 2023 ) + -0.971 (Mar. 2024 ) = €-5.44 Mil.
Fobi Ai's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -1.41 (Jun. 2023 ) + -1.211 (Sep. 2023 ) + -0.275 (Dec. 2023 ) + -1.211 (Mar. 2024 ) = €-4.11 Mil.
Fobi Ai's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -0.084 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) + 0 (Mar. 2024 ) = €-0.08 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.
Fobi Ai (FRA:WMV) 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, Fobi Ai has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Fobi Ai Sloan Ratio % Related Terms
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Fobi Ai Inc is a cutting-edge data intelligence company that helps clients turn real-time data into actionable insights and personalized customer engagement to generate increased profits. The Company operates in one operating segment, being the technology segment wherein it earns revenues from directly selling software as a service, reselling, referring and licensing its technology to licensors. Its IoT device has the ability to integrate seamlessly into existing infrastructure to enable data connectivity across online and on-premise platforms creating scalable solutions for clients across the world. The company operates globally in the retail, telecom, sports and entertainment, casino gaming, and hospitality and tourism industries. It operates in North America and Europe.
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