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.
* 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 Goodness Growth Holdings's Sloan Ratio %
For the Drug Manufacturers - Specialty & Generic subindustry, Goodness Growth Holdings'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.
Goodness Growth Holdings's Sloan Ratio % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Goodness Growth Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Goodness Growth Holdings's Sloan Ratio % falls into.
Goodness Growth Holdings 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.
Goodness Growth Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Goodness Growth Holdings's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -7.329 (Jun. 2023 ) + -5.229 (Sep. 2023 ) + -4.583 (Dec. 2023 ) + -6.711 (Mar. 2024 ) = $-23.85 Mil.
Goodness Growth Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 1.634 (Jun. 2023 ) + 1.655 (Sep. 2023 ) + -0.46 (Dec. 2023 ) + -1.19 (Mar. 2024 ) = $1.64 Mil.
Goodness Growth Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -1.455 (Jun. 2023 ) + -1.129 (Sep. 2023 ) + -0.171 (Dec. 2023 ) + -1.049 (Mar. 2024 ) = $-3.80 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.
Goodness Growth Holdings (OTCPK:GDNSF) 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, Goodness Growth Holdings has a Sloan Ratio of -11.36%, indicating there is a warning stage of accrual build up.
Goodness Growth Holdings Sloan Ratio % Related Terms
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Goodness Growth Holdings (Goodness Growth Holdings) Business Description
Goodness Growth Holdings Inc is a cannabis company whose mission is to provide safe access, quality products and value to its customers while supporting its local communities through active participation and restorative justice programs. It operates in one business segment, namely the Cannabis segment that cultivates, processes, and distributes medical and adult-use cannabis products in a variety of formats, as well as related accessories in Maryland, Minnesota, New Mexico, New York, and formerly Arizona, and Ohio.
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