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.
Adamas One's Sloan Ratio for the quarter that ended in Jun. 2024 was 0.00%.
Warning Sign:
When sloan ratio (-110.99)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Jun. 2024, Adamas One has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Adamas One Sloan Ratio % Historical Data
The historical data trend for Adamas One'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 Adamas One's Sloan Ratio %
For the Luxury Goods subindustry, Adamas One'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.
Adamas One's Sloan Ratio % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Adamas One's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Adamas One's Sloan Ratio % falls into.
Adamas One 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.
Adamas One's Sloan Ratio for the fiscal year that ended in Sep. 2023 is calculated as
Adamas One's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was -4.082 (Sep. 2023 ) + -3.028 (Dec. 2023 ) + -4.903 (Mar. 2024 ) + -2.195 (Jun. 2024 ) = $-14.21 Mil.
Adamas One's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was -0.666 (Sep. 2023 ) + -0.712 (Dec. 2023 ) + -1.232 (Mar. 2024 ) + -0.161 (Jun. 2024 ) = $-2.77 Mil.
Adamas One's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was 0 (Sep. 2023 ) + 0 (Dec. 2023 ) + 0 (Mar. 2024 ) + 0 (Jun. 2024 ) = $0.00 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.
Adamas One (OTCPK:JEWL) 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 Jun. 2024, Adamas One has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Adamas One Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Adamas One's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Adamas One Corp is a high-tech diamond company that uses its proprietary technology to produce high-quality, single-crystal diamonds and diamond materials through a CVD process, which it refers to as Diamond Technology. It operates as a Lab-Grown Diamond manufacturer that produces single-crystal diamonds for gemstone and industrial applications. The company produces chemical vapor deposition (CVD) gem-sized Lab-Grown Diamond crystals using processes pioneered by Apollo Diamond. The company's controlled manufacturing processes enable it to produce High-Quality, High Purity, High Volume, single-crystal colorless, near-colorless, and fancy-colored diamonds to suit a variety of industrial and gemstone applications.
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