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.
When sloan ratio (-50.76)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2023, Lucy Scientific Discovery has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Lucy Scientific Discovery 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 Lucy Scientific Discovery's Sloan Ratio %
For the Drug Manufacturers - Specialty & Generic subindustry, Lucy Scientific Discovery'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.
Lucy Scientific Discovery's Sloan Ratio % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Lucy Scientific Discovery's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Lucy Scientific Discovery's Sloan Ratio % falls into.
Lucy Scientific Discovery 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.
Lucy Scientific Discovery's Sloan Ratio for the fiscal year that ended in Jun. 2023 is calculated as
Lucy Scientific Discovery's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -4.106 (Mar. 2023 ) + -2.577 (Jun. 2023 ) + -1.998 (Sep. 2023 ) + -2.62 (Dec. 2023 ) = $-11.30 Mil.
Lucy Scientific Discovery's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -2.035 (Mar. 2023 ) + -1.861 (Jun. 2023 ) + -1.288 (Sep. 2023 ) + -0.74 (Dec. 2023 ) = $-5.92 Mil.
Lucy Scientific Discovery's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.3 (Mar. 2023 ) + 0 (Jun. 2023 ) + -0.123 (Sep. 2023 ) + 0 (Dec. 2023 ) = $-0.42 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.
Lucy Scientific Discovery (NAS:LSDI) 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 Dec. 2023, Lucy Scientific Discovery has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Lucy Scientific Discovery Sloan Ratio % Related Terms
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Lucy Scientific Discovery (Lucy Scientific Discovery) Business Description
Lucy Scientific Discovery Inc is an early-stage psychotropics contract manufacturing company focused on becoming the contract research, development, and manufacturing organization for the emerging psychotropics-based medicines industry. Its drug products are designed to treat a range of mental health and cognitive conditions.
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