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, PMD Device Solutions AB has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
PMD Device Solutions AB 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 PMD Device Solutions AB's Sloan Ratio %
For the Medical Devices subindustry, PMD Device Solutions AB'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.
PMD Device Solutions AB's Sloan Ratio % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, PMD Device Solutions AB's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where PMD Device Solutions AB'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.
PMD Device Solutions AB's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
PMD Device Solutions AB's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 0 (Dec. 2023 ) + -6.357 (Mar. 2024 ) + -11.703 (Jun. 2024 ) + -11.838 (Sep. 2024 ) = kr-29.90 Mil.
PMD Device Solutions AB's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 0 (Dec. 2023 ) + 0.988 (Mar. 2024 ) + 0.043 (Jun. 2024 ) + -10.659 (Sep. 2024 ) = kr-9.63 Mil.
PMD Device Solutions AB's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was 0 (Dec. 2023 ) + -0.706 (Mar. 2024 ) + -4.56 (Jun. 2024 ) + -0.308 (Sep. 2024 ) = kr-5.57 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.
PMD Device Solutions AB (OSTO:PMDS) 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, PMD Device Solutions AB has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
PMD Device Solutions AB Sloan Ratio % Related Terms
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PMD Device Solutions AB develops and sells medical products for respiratory monitoring in both the hospital and homecare setting. Its primary product is RespiraSense, a solution used for monitoring respiratory rate to detect deterioration of a patient's general condition early and to avoid preventable respiratory failure and adverse patient outcomes. RespiraSense is, to the Company's knowledge, the world's only continuous, motion-tolerant respiratory rate monitor delivering class-leading reliability in measuring respiratory rate. RespiraSense is a novel technology that is commercialised in Europe, the UK, and FDA-cleared in the US.
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