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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.
Medicine Man Technologies (OTCPK:SHWZ) 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, Medicine Man Technologies has a Sloan Ratio of -17.14%, indicating there is a warning stage of accrual build up.
Medicine Man Technologies Sloan Ratio % Related Terms
Medicine Man Technologies 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.
For the Pharmaceutical Retailers subindustry, Medicine Man Technologies'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.
Medicine Man Technologies Sloan Ratio % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Medicine Man Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Medicine Man Technologies's Sloan Ratio % falls into.
Medicine Man Technologies 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.
Medicine Man Technologies's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Medicine Man Technologies's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was -0.322 (Sep. 2023 ) + -29.365 (Dec. 2023 ) + -16.053 (Mar. 2024 ) + -13.937 (Jun. 2024 ) = $-59.7 Mil.
Medicine Man Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was 6.946 (Sep. 2023 ) + 3.452 (Dec. 2023 ) + -3.7 (Mar. 2024 ) + -0.109 (Jun. 2024 ) = $6.6 Mil.
Medicine Man Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was -4.741 (Sep. 2023 ) + -1.169 (Dec. 2023 ) + -1.532 (Mar. 2024 ) + -0.617 (Jun. 2024 ) = $-8.1 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.
Medicine Man Technologies (SHWZ) has a Sloan Ratio % of -17.14% as of Jun. 2024. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Medicine Man Technologies and its competitors.
Is Medicine Man Technologies' Sloan Ratio % too high?
Medicine Man Technologies' current Sloan Ratio % is -17.14%. Overall, Medicine Man Technologies has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Medicine Man Technologies' Sloan Ratio % compare to HEWA and RDGT?
Medicine Man Technologies' Sloan Ratio % of -17.14% can be compared against companies in the Healthcare Providers & Services 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 Healthcare Providers & Services company?
A good Sloan Ratio % depends on the Healthcare Providers & Services 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 Medicine Man Technologies and its competitors. Medicine Man Technologies's current Sloan Ratio % is -17.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Medicine Man Technologies stock overvalued right now?
Medicine Man Technologies (SHWZ) has a current Sloan Ratio % of -17.14%. The current Sloan Ratio % is -17.14%. Medicine Man Technologies' overall GF Score™ is 12/100. 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 Medicine Man Technologies (SHWZ), the current Sloan Ratio % is -17.14% as of Jun. 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.
Medicine Man Technologies Inc is a vertically integrated multi-state cannabis operator focused on growth through expansion into existing and new markets. The Company's business involves the cultivation, manufacturing, distribution, and retail sale of cannabis and cannabis-related products. The Company sells products it manufactures and cultivates and a variety of other cannabis goods through wholly-owned retail stores, licensing arrangements, and/or third-party operators and retailers. Its operations are organized into three different segments: Retail, consisting of retail locations for sale of cannabis products; Wholesale, consisting of manufacturing, cultivation, and sale of both wholesale cannabis and non-cannabis products; and Other, consisting of all other income and expenses.
12GF Score
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