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.
ShareHope Medicine Co's Sloan Ratio for the quarter that ended in Sep. 2024 was -1.08%.
As of Sep. 2024, ShareHope Medicine Co has a Sloan Ratio of -1.08%, indicating the company is in the safe zone and there is no funny business with accruals.
ShareHope Medicine Co Sloan Ratio % Historical Data
The historical data trend for ShareHope Medicine Co'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 ShareHope Medicine Co's Sloan Ratio %
For the Medical Distribution subindustry, ShareHope Medicine Co'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.
ShareHope Medicine Co's Sloan Ratio % Distribution in the Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, ShareHope Medicine Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where ShareHope Medicine Co's Sloan Ratio % falls into.
ShareHope Medicine Co 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.
ShareHope Medicine Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
ShareHope Medicine Co's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 44.694 (Dec. 2023 ) + 24.529 (Mar. 2024 ) + 71.164 (Jun. 2024 ) + 16.745 (Sep. 2024 ) = NT$157 Mil.
ShareHope Medicine Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 104.02 (Dec. 2023 ) + 35.647 (Mar. 2024 ) + 104.494 (Jun. 2024 ) + 66.137 (Sep. 2024 ) = NT$310 Mil.
ShareHope Medicine Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -70.985 (Dec. 2023 ) + -86.498 (Mar. 2024 ) + 72.301 (Jun. 2024 ) + 8.726 (Sep. 2024 ) = NT$-76 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.
ShareHope Medicine Co (ROCO:8403) 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, ShareHope Medicine Co has a Sloan Ratio of -1.08%, indicating the company is in the safe zone and there is no funny business with accruals.
ShareHope Medicine Co Sloan Ratio % Related Terms
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ShareHope Medicine Co Ltd is engaged in providing wholesale and retail sales of medicines and hygiene materials, leasing assets for medical institutions to undertake related medical services and physical examinations for Taiwanese people and foreign laborers, on-site medical support services, hemodialysis business management, and ophthalmic medical management in collaboration with medical institutions. The company also provides a pharmaceutical procurement platform for medicines, health materials, and home care products. The company's revenue mainly stems from medicine and medical material sales, alongside service income from physical examinations for Taiwanese citizens and foreign laborers, on-site medical support, hemodialysis management, and ophthalmic collaborations.
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