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.
As of Sep. 2024, Healthcare Services Group has a Sloan Ratio of 3.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Healthcare Services Group Sloan Ratio % Historical Data
* 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 Healthcare Services Group's Sloan Ratio %
For the Medical Care Facilities subindustry, Healthcare Services Group'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.
Healthcare Services Group's Sloan Ratio % Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Healthcare Services Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Healthcare Services Group's Sloan Ratio % falls into.
Healthcare Services Group 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.
Healthcare Services Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Healthcare Services Group's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 23.508 (Dec. 2023 ) + 15.309 (Mar. 2024 ) + -1.788 (Jun. 2024 ) + 14.03 (Sep. 2024 ) = $51 Mil.
Healthcare Services Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 49.445 (Dec. 2023 ) + -26.033 (Mar. 2024 ) + 16.319 (Jun. 2024 ) + 4.312 (Sep. 2024 ) = $44 Mil.
Healthcare Services Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -1.383 (Dec. 2023 ) + 11.716 (Mar. 2024 ) + -27.755 (Jun. 2024 ) + 0.288 (Sep. 2024 ) = $-17 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.
Healthcare Services Group (NAS:HCSG) 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, Healthcare Services Group has a Sloan Ratio of 3.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Healthcare Services Group Sloan Ratio % Related Terms
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Healthcare Services Group Inc is a provider of housekeeping and facility management services to the healthcare industry. The company operates two business segments, both contributing roughly equally to the company's revenue: Housekeeping, laundry, linen, and other services; and Dietary department services. Housekeeping includes management of clients' housekeeping departments, cleaning, disinfecting and sanitizing, laundry, bed linen, and uniform services. Dietary consists of food purchasing, meal preparation, and providing dietitian consulting services. Its clients are nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States of America.
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