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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.
Otofarma SpA's Sloan Ratio for the quarter that ended in Dec. 2024 was -8.71%.
As of Dec. 2024, Otofarma SpA has a Sloan Ratio of -8.71%, indicating the company is in the safe zone and there is no funny business with accruals.
Otofarma SpA (MIL:OTO) 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. 2024, Otofarma SpA has a Sloan Ratio of -8.71%, indicating the company is in the safe zone and there is no funny business with accruals.
Otofarma SpA Sloan Ratio % Related Terms
Otofarma SpA Sloan Ratio % Historical Data
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The historical data trend for Otofarma SpA'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.
Otofarma SpA Sloan Ratio % Chart
Otofarma SpA Annual Data
Trend
Dec23
Dec24
Sloan Ratio %
-0.83
-8.71
Otofarma SpA Semi-Annual Data
Dec23
Dec24
Sloan Ratio %
0.00
-8.71
MIL:OTO vs ABT, SYK, MDT: Sloan Ratio % Comparison
For the Medical Devices subindustry, Otofarma SpA'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.
Otofarma SpA Sloan Ratio % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Otofarma SpA's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Otofarma SpA's Sloan Ratio % falls into.
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.
Otofarma SpA's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
* 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.
Otofarma SpA (MIL:OTO) has a Sloan Ratio % of -8.71% as of Dec. 2024. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Otofarma SpA and its competitors.
Is Otofarma SpA's Sloan Ratio % too high?
Otofarma SpA's current Sloan Ratio % is -8.71%. Overall, Otofarma SpA has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Otofarma SpA's Sloan Ratio % compare to ABT and SYK?
Otofarma SpA's Sloan Ratio % of -8.71% can be compared against companies in the Medical Devices & Instruments industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Medical Devices & Instruments company?
A good Sloan Ratio % depends on the Medical Devices & Instruments industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Otofarma SpA and its competitors. Otofarma SpA's current Sloan Ratio % is -8.71%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otofarma SpA stock overvalued right now?
Otofarma SpA (MIL:OTO) has a current Sloan Ratio % of -8.71%. The current Sloan Ratio % is -8.71%. Otofarma SpA's overall GF Score™ is 16/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Otofarma SpA (MIL:OTO), the current Sloan Ratio % is -8.71% as of Dec. 2024. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Otofarma SpA is engaged in the construction and production of hearing aids, is constantly growing in the audiological field to provide adequate responses to every type of hearing aid need to its customers who require the possible personalized application of custom-made hearing aids. It provides otoacoustic medical devices and TELEMEDICINE services exclusively in affiliated pharmacies, possessing a portfolio of Instrumental IT patents.
16GF Score
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