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.
HeartCore Enterprises's Sloan Ratio for the quarter that ended in Sep. 2024 was 19.54%.
As of Sep. 2024, HeartCore Enterprises has a Sloan Ratio of 19.54%, indicating there is a warning stage of accrual build up.
HeartCore Enterprises Sloan Ratio % Historical Data
The historical data trend for HeartCore Enterprises'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 HeartCore Enterprises's Sloan Ratio %
For the Software - Application subindustry, HeartCore Enterprises'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.
HeartCore Enterprises's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, HeartCore Enterprises's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where HeartCore Enterprises's Sloan Ratio % falls into.
HeartCore Enterprises 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.
HeartCore Enterprises's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
HeartCore Enterprises's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was -2.853 (Dec. 2023 ) + -1.333 (Mar. 2024 ) + -1.951 (Jun. 2024 ) + 11.058 (Sep. 2024 ) = $4.92 Mil.
HeartCore Enterprises's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was -1.874 (Dec. 2023 ) + 0.741 (Mar. 2024 ) + -2.202 (Jun. 2024 ) + -2.039 (Sep. 2024 ) = $-5.37 Mil.
HeartCore Enterprises's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was 0.001 (Dec. 2023 ) + 0.011 (Mar. 2024 ) + 5.261 (Jun. 2024 ) + 0.046 (Sep. 2024 ) = $5.32 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.
HeartCore Enterprises (NAS:HTCR) 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, HeartCore Enterprises has a Sloan Ratio of 19.54%, indicating there is a warning stage of accrual build up.
HeartCore Enterprises Sloan Ratio % Related Terms
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HeartCore Enterprises Inc is a software development company. It provides software through two business units. The first business unit includes a customer experience management business that has been in existence for 12 years. The customer experience management platform includes marketing, sales, service and content management systems, as well as other tools and integrations, that enable companies to attract and engage customers throughout the customer experience. It also provides education, services and support to help customers be successful with the CXM Platform. The second business unit, its DX division, is a digital transformation business that provides customers with robotics process automation, process mining and task mining to accelerate the digital transformation of enterprises.
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