Fortune Rise Acquisition (Fortune Rise Acquisition) Sloan Ratio % : -194.13% (As of Mar. 2024)

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What is Fortune Rise Acquisition Sloan Ratio %?

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.

Fortune Rise Acquisition's Sloan Ratio for the quarter that ended in Mar. 2024 was -194.13%.

Warning Sign:

When sloan ratio (-190.44)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.

As of Mar. 2024, Fortune Rise Acquisition has a Sloan Ratio of -194.13%, indicating earnings are more likely to be made up of accruals.

Fortune Rise Acquisition Sloan Ratio % Historical Data

The historical data trend for Fortune Rise Acquisition'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.

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Fortune Rise Acquisition Sloan Ratio % Chart

Fortune Rise Acquisition Annual Data

Trend

Dec21

Dec22

Dec23

Sloan Ratio %

1.38

-190.44

Fortune Rise Acquisition Quarterly Data
	Feb21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Sloan Ratio %	Get a 7-Day Free Trial								-	-	-	-190.44	-194.13

Competitive Comparison of Fortune Rise Acquisition's Sloan Ratio %

For the Shell Companies subindustry, Fortune Rise Acquisition'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.

Fortune Rise Acquisition's Sloan Ratio % Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Fortune Rise Acquisition's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Fortune Rise Acquisition's Sloan Ratio % falls into.

Fortune Rise Acquisition 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.

Fortune Rise Acquisition's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (A: Dec. 2023 )	-	Cash Flow from Operations (A: Dec. 2023 )
	-	Cash Flow from Investing (A: Dec. 2023 ))	/	Total Assets (A: Dec. 2023 )
	=	(-0.352	-	-3.187
	-	69.434)	/	34.971
	=	-190.44%

Fortune Rise Acquisition's Sloan Ratio for the quarter that ended in Mar. 2024 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Mar. 2024 )
	=	(-1.195	-	-2.553
	-	69.832)	/	35.273
	=	-194.13%

Fortune Rise Acquisition's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -0.005 (Jun. 2023 ) + 0.04 (Sep. 2023 ) + -0.743 (Dec. 2023 ) + -0.487 (Mar. 2024 ) = $-1.20 Mil.
Fortune Rise Acquisition's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -1.318 (Jun. 2023 ) + -0.425 (Sep. 2023 ) + -0.594 (Dec. 2023 ) + -0.216 (Mar. 2024 ) = $-2.55 Mil.
Fortune Rise Acquisition's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 65.788 (Jun. 2023 ) + -0.261 (Sep. 2023 ) + 4.685 (Dec. 2023 ) + -0.38 (Mar. 2024 ) = $69.83 Mil.

Fortune Rise Acquisition (NAS:FRLA) 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.

According to How to Beat the Market with the Sloan Ratio:

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, Fortune Rise Acquisition has a Sloan Ratio of -194.13%, indicating earnings are more likely to be made up of accruals.

Fortune Rise Acquisition Sloan Ratio % Related Terms

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Fortune Rise Acquisition (Fortune Rise Acquisition) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » Fortune Rise Acquisition Corp (NAS:FRLA) » Definitions » Sloan Ratio %

Comparable Companies

Traded in Other Exchanges

N/A

Address

13575 58th Street North, Suite 200, Clearwater, FL, USA, 33760

Website

Fortune Rise Acquisition Corp is a blank check company.

Executives

Ronald Jay Pollack	director	1862 MCCAULEY RD, CLEARWATER FL 33765
Ryan Spick	director	18034 N 134TH AVE, SUN CITY WEST AZ 85375
Philip Goodman	director	6 OAKWOOD DRIVE, SEWALL'S POINT FL 34996
Saba Capital Management, L.p.	10 percent owner	405 LEXINGTON AVENUE, 58TH FLOOR, NEW YORK NY 10174
Boaz Weinstein	10 percent owner	405 LEXINGTON AVENUE, 58TH FLOOR, NEW YORK NY 10174
J Richard Iler	officer: PEO and CFO	815 WALKER STREET, STE. 1155, HOUSTON TX 77002
Payam Eshraghian	director	20601 TROON LANE, HUNTINGTON BEACH CA 92646
Michael Davidov	director	60 EAST 42 STREET, NEW YORK NY 10165
David Xianglin Li	director	3 STONER AVE, GREAT NECK NY 11021
Lei Huang	director, officer: Chief Executive Officer	3 STONER AVE, GREAT NECK NY 10021
Norman C Kristoff	director	C/O JAMES M. RAE, ESQ., 330 MADISON AVEUNE, 29TH FLOOR, NEW YORK NY 10017
Yuanmei Ma	officer: Chief Financial Officer	ROOM 605A TOWER A, RAYCOM INFO TECH PARK, NO. 2 KEXUEYUAN S. RD., ZHONGGUANCUN, HAIDIAN DISTRICT, BEIJING F4 100080
Lei Xu	director, officer: President and Chairwoman	1818 LINDA VISTA CIR., FULLERTON CA 92831
Fortune Rise Sponsor Llc	10 percent owner	48 BRIDGE STREET, BUILDING A, METUCHEN NJ 08840
Koon Keung Chan	10 percent owner	48 BRIDGE STREET, BUILDING A, METUCHEN NJ 08840